BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Total Utility
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Marginal Utility
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Detailed explanation-1: -Example of Total Utility John is hungry and decides to eat a chocolate bar. His total utility from eating one chocolate bar is 20 utils. He is still hungry so he eats another chocolate bar, where his total utility is 25 utils. John is still hungry and has two more chocolate bars.
Detailed explanation-2: -Total utility refers to the overall level of happiness or satisfaction that a consumer experiences by consuming a certain amount of a good or service.
Detailed explanation-3: -Total utility refers to the summation of all additional or marginal utility derived from every extra unit of consumption. Therefore, if a consumer wants to calculate the total utility obtained from a given product, then he should add up all the marginal utilities till the last unit of consumption.