Marginal Utility Theory

Basic Concepts

Basic concepts in the explanation of the marginal utility theory of consumer behaviour are highlighted in this sub-section.

Total Utility

This refers to the total satisfaction obtained by a consumer from the consumption of some quantity of a good or service.  For example, the total utility from Apple (TUa) is dependent on the quantity of Apple (Qa) consumed.  More formally written as

TU_a=f(Q_a)

Equation is called total utility function