The difference between
Explanation of Solution
Marginal utility refers to the additional unit of fraction derived from the consumption of one or more additional units of goods and services. The total utility refers to the total satisfaction of a person, which derives from the consumption of various units of a commodity.
Marginal utility first rises and then declines due to the working of the law of diminishing marginal utility, which states that as a person goes on consuming more and more units of the same commodity, his satisfaction increases and then starts declining. This is why the marginal utility first rises and then declines.
Total utility: Total utility refers to the total satisfaction derived by a person from the consumption of overall unit of a commodity.
Marginal utility: Marginal utility refers to the additional utility derived by a person from an additional unit of commodity.
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