Question

Formula for calculation of total utility is ________.

• A. $TU=\sum MU$
• B. $TU=M{U}_1+M{U}_2+M{U}_3+.......+M{U}_n$
• C. both A and B
• D. none of the above

Answer 1

Answer: (C)

both A and B

Total utility refers to the summation of all additional or marginal utility derived from every extra unit of consumption. Therefore, if a consumer wants to calculate the total utility obtained from a given product, then he should add up all the marginal utilities till the last unit of consumption.