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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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Relationship Between Total Utility and Marginal Utility

Relationship Between Total Utility and Marginal Utility:

The relationship between total utility and marginal utility can be explained by the help of the following schedule:



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

In the above schedule, we can see that when a consumer consumes additional units of orange then the total utility inclines at first at an increasing rate, remains constant for some period and then starts declining. With additional consumption of oranges, marginal utility declines, reach zero and become even negative. It can also be expressed by the following diagram:
Concept of total utility

From the above schedule and diagram, we can summarize the relationship between Total Utility and Marginal Utility as follows :
  1. Total utility is the sum of total marginal utility. Marginal utility is the change in total utility.
  2. Total utility generally remains positive while marginal utility may be positive, zero or even negative.
  3. When marginal utility is positive, total utility rises.
  4. When marginal utility is zero, total utility is maximum.
  5. When marginal utility is negative, total utility falls.

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