Business Economics -I (B.Com) 1st Sem Previous Year Solved Question Paper 2022

Marginal utility and total utility are concepts in economics that help explain consumer preferences and decision-making:

1. Marginal Utility:
 - Marginal utility refers to the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.
 - It focuses on the incremental change in utility as consumption increases by one unit.
 - Marginal utility often follows the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction (marginal utility) from each additional unit tends to decrease.

2. Total Utility:
 - Total utility represents the overall satisfaction or benefit that a consumer receives from consuming all units of a particular good or service.
 - It sums up the marginal utilities of all the units consumed.
 - Total utility can increase as long as the marginal utility is positive, indicating that each additional unit adds some level of satisfaction.

Conclusion : Marginal utility is concerned with the additional satisfaction gained from consuming one more unit of a product, while total utility reflects the cumulative satisfaction obtained from consuming all units of that product. Both concepts are essential in understanding consumer choices and how they 
allocate their resources.