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Concept of total utility

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Total utility (TU)

The total satisfaction received from the consumption of given quantities of a commodity by a consumer within a given time period is called total utility. In other words, total utility is the sum of all marginal utilities obtained from the consumption of different units of a commodity.

For example, a consumer consumes the first unit of an orange and gets 8 utils. As he consumes the second unit of orange he gets 6 utils. Now the total utility becomes 8 + 6 = 14.

Symbolically; 

TU = ∑MU
or, TU = AU x n

Where;

∑MU = Sum of Marginal Utilities
AU = Average Utilities
n = Number of Commodities

The concept of Total Utility can be made clear by the help of following schedule and diagram:

Units of orange
Total utility
1
8
2
14
3
18
4
20
5
20
6
18

Total-utility-diagram

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