Question

Which of the following equations is incorrect?

• A. $MU=T{U}_{n+2}-T{U}_{n+1}$
• B. $MU=\frac{TU}{Q}$
• C. $MU=T{U}_n-T{U}_{n-1}$
• D. $TU=\sum MU$

Answer 1

The correct option is B $MU=\frac{TU}{Q}$

Marginal utility is the additional utility which the consumer derives on the consumption of one extra unit of a commodity. Hence, total utility is the sum of marginal utilities for each unit consumed.
However, marginal utility is not same as average utility. Average utility is calculated by dividing total utility by number of units consumed.