1. What is Total Utility?

Total Utility (TU) represents the total satisfaction or benefit derived from consuming a certain quantity of goods or services. It is calculated by summing the marginal utilities of each unit consumed.

2. How Does the Calculator Work?

The calculator uses the total utility formula:

Where:

• \( TU \) — Total Utility
• \( \sum \) — Summation symbol
• \( MU \) — Marginal Utility per unit

Explanation: The calculator sums all the marginal utility values provided to calculate the total utility derived from consuming multiple units of a good or service.

3. Importance of Total Utility Calculation

Details: Understanding total utility helps in analyzing consumer behavior, making optimal consumption decisions, and maximizing satisfaction within budget constraints.

4. Using the Calculator

Tips: Enter marginal utility values separated by commas (e.g., 10, 8, 6, 4). The calculator will sum all values to provide the total utility.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between total utility and marginal utility?
A: Total utility is the overall satisfaction from consuming all units, while marginal utility is the additional satisfaction from consuming one more unit.

Q2: Can total utility decrease?
A: Yes, if marginal utility becomes negative (disutility), total utility can decrease with additional consumption.

Q3: What is the law of diminishing marginal utility?
A: It states that as consumption increases, the marginal utility derived from each additional unit tends to decrease.

Q4: How is total utility used in economics?
A: It helps explain consumer choice behavior and forms the basis for demand curve derivation.

Q5: Can I calculate total utility for multiple goods?
A: This calculator is designed for a single good. For multiple goods, you would need to calculate utility for each good separately.