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Total Utility (TU) is derived from Marginal Utility (MU) by summing the additional satisfaction gained from each unit of a good or service consumed. Specifically, TU increases as more units are consumed, reflecting the cumulative satisfaction, while MU represents the change in TU resulting from consuming one more unit. Mathematically, TU can be expressed as the integral of MU over the quantity consumed. Therefore, understanding MU helps quantify how TU grows with consumption.

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How does the TU change with the change in the MU of a commodity?

Total Utility (TU) is the overall satisfaction or benefit derived from consuming a certain quantity of a commodity, while Marginal Utility (MU) refers to the additional satisfaction gained from consuming one more unit of that commodity. When the MU of a commodity increases, it generally leads to an increase in TU, as each additional unit consumed provides more satisfaction. Conversely, if the MU decreases, the TU may still increase, but at a diminishing rate, or may even decline if consumption continues beyond the optimal point. Thus, TU is directly influenced by changes in MU, reflecting the incremental value of consumption.


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