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Marginal Utility vs Total Utility

Marginal Utility and Total Utility are two Consumer Choice concepts in AP Economics that students often mix up. In short: marginal utility is marginal utility is the additional satisfaction gained from consuming one more unit of a good. Meanwhile, total utility is total utility is the overall satisfaction a consumer receives from consuming a given quantity of a good. Here is how they compare side by side.

Marginal Utility

Marginal utility is the additional satisfaction gained from consuming one more unit of a good.

It typically falls as you consume more of a good, a pattern called diminishing marginal utility. Consumers compare marginal utility per dollar across goods to allocate spending. When marginal utility is negative, consuming more actually reduces total utility.

MU = ΔTotal Utility ÷ ΔQuantity consumed.
Total Utility

Total utility is the overall satisfaction a consumer receives from consuming a given quantity of a good.

It rises as long as marginal utility is positive and is maximized when marginal utility equals zero. Total utility equals the sum of the marginal utilities of all units consumed. Beyond the satiation point it falls.

Total Utility = Σ (marginal utility of each unit consumed).

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