# What is the relationship between the marginal utility and total utility?

## What is the relationship between the marginal utility and total utility?

The relationship between total utility and marginal utility indicates that when marginal utility decreases, total utility increases at a decreasing rate, and when total utility is at a maximum point, marginal utility is zero and total utility starts to decline if marginal utility is negative.

What is the relationship between total utility and marginal utility with diagram?

In the diagram, TU is the total utility curve and MU is the marginal utility curve. As the consumer consumes the first unit of commodity, s/he obtains 10 utils of utility. Here both TU and MU are the same. When the consumer consumes 2nd unit of goods, TU increases to 18 utils from 10 utils and MU decreases to 8 utils.

When MU is positive then tu?

As long as MU is positive, the value of TU increases with an increase in the consumption of the commodity.

### What is the relationship between total utility and marginal utility explain with the help of a table schedule?

The relation between total and marginal utility is explained with the help of Table 1. So long as total utility is increasing, marginal utility is decreasing up to the 4th unit. When total utility is maximum at the 5th unit, marginal utility is zero. It is the point of satiety for the consumer.

What is the relationship between MRS and marginal utility?

The marginal rate of substitution is equal to the ratio of the marginal utilities with a minus sign. Thus even though the marginal utilities have no behavioral content their ratio does – it measures the rate at which a consumer is willing to substitute between the two goods.

When MU is high Tu decreases?

At the initial level of consumption MU increases and TU also increases but later on there is a saturation point of consumption where MU is ZERO and TU is at its top and after that MU gets negative and TU gets decrease.

#### When marginal utility is zero at that time total utility is?

Maximum
Thus, with zero marginal utility, total utility is Maximum.

What do you mean by total utility and marginal utility explain with the help of example and diagram?

Total Utility. Marginal Utility. Definition. It is the aggregate of satisfaction or utility that a consumer derives from the consumption of multiple units of a specific commodity. Marginal utility meaning, the change in the total utility of a commodity due to the consumption of an additional unit of a commodity.

What is the relationship between MRS MU1 and MU2?

since utility is just the total number of pencils you have, one more pencil increase your utility by exactly 1 – thus we must have MU1 = MU2 = 1. This is very easy to verify using the partial derivative definition.

## What does equality between MRS and MRTS indicate?

The MRTS reflects the give-and-take between factors, such as capital and labor, that allow a firm to maintain a constant output. MRTS differs from the marginal rate of substitution (MRS) because MRTS is focused on producer equilibrium and MRS is focused on consumer equilibrium.

When MU is zero Tu is maximum Agree or disagree?

When MU is zero the TU is the maximum. MU is the additional utility derived from the consumption of last unit of commodity. The TU is the sum of utilities derived from all units of consumption. The inter relationship between MU and TU can be explained with the help of the schedule.

When marginal utility is falling but positive total utility will?

When marginal utility diminishes but stays positive then total utility increases at a decreasing rate as it is the summation of all marginal utilities. 