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🤔 "Should I go to Australia or stay in Nepal?"
🚗 Buy a Car or Invest in Nepal?
🏛️ "Government job vs business?"
🎓 "MBA worth it?"
📈 Australia vs Japan Salary Calculator
🛵 "Bike or scooter?"
🏡 Buy Land or Buy House Calculator
✈️ "Study abroad or start a business?"
💼 Government Job vs Private Job Simulator
🇳🇵 Nepal vs Australia Financial Comparison
💼 Start Business or Keep Your Job?
🇨🇦 Is Canada Worth It Financially?
💰 Gold vs FD vs Stock vs Land
🚌 Bike vs Public Transport Cost Calculator
💡 "Should I buy a car or invest?"
📊 MBA ROI Calculator Nepal
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Concept of marginal utility

Concept of marginal utility

Concept of Marginal Utility (MU):

Marginal utility is the change in total utility by the consumption of an additional unit of a commodity. In other words, marginal utility is the addition to the total utility derived from the consumption of one additional unit. It is also called additional utility.

According to Prof. K.E. Boulding ”The marginal utility of any quantity of a commodity is the increase in total utility which results from a unit increase in its consumption.
For example, once a client consumes one orange, he gets a total utility of eight utils. By intense second orange, total utility becomes fourteen (8 + 6). Thus the utility of the second orange is 14-8=6 utils.

Symbolically ;

MU = TUn - TUn-1
0r, MU = 🔺TU/ 🔺n

Where;
TUn = nth Total Utility
TUn-1 = (n-1)th Total Utility

🔺TU = Change in Total Utility
🔺n = Change in number of units

It can be made clear by the help of following schedule and diagram:

Units of orange
Total utility
Marginal Utility
1
8
8
2
14
6
3
18
4
4
20
2
5
20
0
6
18
-2

Marginal-utility-diagram

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