# Concepts of Utility

#### Concepts of Utility :

Following are the two main concepts of utility :

• Total Utility (TU) :  Total  utility  refers to the aggregate of utility derived by the consumer from all units of a commodity consumed. It is an aggregate of utilities from all successive units of a commodity consumed.
• Marginal Utility (MU) : Marginal utility refers to the  additional utility derived by    a consumer from an additional unit of a commodity consumed. In other  words,  it is the addition made by the last unit of a commodity consumed.

Relationship between Total Utility and Marginal Utility :

Marginal utility derived from various units of a commodity and its total utility are interrelated. This can be easily followed from the hypothetical example given below.

Utility Schedule

 Units of x Total utility Marginal utility 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 30 0 7 28 –2

Above table explains the relationship between total utility and marginal utility.