The difference between total utility and marginal utility is that:
A) Total utility is the satisfaction from consuming one additional unit of a good while marginal utility is the complete satisfaction from consuming a good.
B) Total utility is the complete satisfaction from consuming a good while marginal utility is the satisfaction from consuming one additional unit of a good.
C) Both represent the satisfaction obtained from most all goods and services.
D) Total utility is the satisfaction from consuming a good while marginal utility is the satisfaction from consuming services.

Question

Quizplus · Accepted Answer

Total utility refers to the overall satisfaction a person gets from consuming a certain amount of a good, while marginal utility refers to the additional satisfaction gained from consuming one more unit of that good. In other words, total utility is the sum of all marginal utilities. Therefore, option B is the correct answer. Option A is incorrect because total utility includes all units of consumption, not just one additional unit. Option C is incorrect because it is too broad and ambiguous. Option D is incorrect because marginal and total utility refer to goods, not just services.

The Difference Between Total Utility and Marginal Utility Is That