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
TUa=f(Qa)
Equation is called total utility function