Economics WAEC

In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to?

A. subtract MU from TU
B. Add MU from the various levels
C. multiply MU by the initial TU
D. Divide current MU by previous MU

Correct Answer: Option B

B. Add MU from the various levels

Explanation

“Marginal utility is an addition made to total utility by consuming one more unit of a commodity”.

Total Utility is Summation of Marginal Utilities: in order to get the total utility, you will have to sum up the additional/extra utility (MU) from the given levels of consumption

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