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Question #95696
Explain the relationship between total utility and marginal utility. Describe the Law of
Diminishing Marginal Utility. In the case of which of the following commodities the law
doesnâ€™t work: Mango, Sweets, Sugar, Money, Rice, Wealth, and Ornament.
1
2019-10-02T09:28:03-0400

UtilityÂ is the satisfaction that a person derives from the consumption of a good or service.Â

Total utilityÂ is the total satisfaction received from consuming a given total quantity of a good or service, whileÂ marginal utilityÂ is the satisfaction gained from consuming an additional quantity of a particular good or service.

Marginal utility (MU) is the difference/delta/addition/reduction in total utility when you consume one additional unit of good. So the relationship can be show as:

"MU = \\Delta(TU)\/\\Delta(Q)"

The Law of Diminishing Marginal Utility:

all else equal, as consumption increases theÂ marginal utilityÂ derived from each additional unit declines.

In this case the law o diminishing marginal utility does not apply to money and wealth.

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