Marginal Utility:
Marginal Utility is the adding up made to the net utility by consuming one more unit of a commodity. For illustration, when a consumer consumes 10 biscuits, the marginal utility is the utility derived from the 10th unit. This is nothing except the net utility of 10 biscuits minus the net utility of 9 biscuits.
Therefore,
MUn = TUn – TUn-1
Here,
MUn = Marginal Utility of ‘nth’ commodity.TUn = Net Utility of n units.TU n-1 = Net Utility of n-1 units.
Table: Relationship between Marginal Utility and Total Utility
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