Relationship between Total Utility and
Marginal Utility
There is a definite
and well defined relationship between total utility and marginal utility.
Total Utility
It refers to the total satisfaction derived
by the consumer from the consumption of a specific quantity of a commodity.
For example, the
total utility of consuming two apples is the total satisfaction that these two
apples provide.
Marginal Utility
It refers to the
additional utility derived from the consumption of an additional unit of a
commodity.
The relation between total utility and
marginal utility is shown in below graph.
Graph ‘A’ shows
that the total utility increases first,
reaches the maximum and then starts decreasing
Graph ‘B’ shows
continuously decreasing marginal utility curve
 |
| marginal utility |
Let us analyze the graph deeply
