Answer to Question #157939 in Economics of Enterprise for Roisi

Question

Prove that TU=∑MU and MU =ΔTU/ΔQ

Answer 1

$TU=∑MU$

Because marginal units starts from the 1st unit and ends with the nth unit (last unit) consumed by the consumer. So that, $TU=∑MU.$

$MU =\frac{ΔTU} {ΔQ}$

Marginal utility is the amount by which total utility changes when one additional unit of agood is consumed. Total utility is the total satisfaction derived from consuming aparticular quantity of good. Marginal Utility (MU) is calculated by dividing the change intotal utility (TU) by the change in Quantity consumed.