Total Utility - Definition, Latest News, and Why ... - ClearTax

The utility is the satisfaction that an individual derives from consuming a good or service. Similarly, total utility is the total ... BlackVersion0 Products IT IncomeTaxFiling FileIncometaxreturnsforfreein7minutes EX ExpertAssistedServices Getexperthelpfortaxfilingorstartingyourbusiness 80c New TaxSaving CuratedMutualFunds&plansfortaxsavings MF New MutualfundInvestments InvestinbestGrowthmutualfunds GST GSTSoftware CompleteGSTfiling&billingsolution TC TaxCloud(DirectTaxSoftware) I-T,e-TDS&AuditSoftwareforCAs&TaxProfessionals EINV e-InvoicingSoftware Completesolutionforallyoure-invoicingneeds Aboutus HelpCenter IncomeTax GST e-Invoicing MutualFunds Business LogIn Wheredoyouwanttologin? IncomeTaxE-Filing GSTSoftware MutualFunds SignUp SignUp SignUp LogIn IncomeTaxE-Filing GSTSoftware MutualFunds Products IT IncomeTaxFiling EX ExpertAssistedServices 80c TaxSaving MF MutualFundInvestments GST GSTSoftware TC TaxCloud(DirectTaxSoftware) NeedHelp? Aboutus FileITR,invest&saveupto₹46,800intaxesonthego 0%commission•Earn upto1.5%extrareturns Getdownloadlink Downloadlinksent Forandroid&IOSusers Glossary Trending home Economy Economics TotalUtility Category Economy Subcategories TotalUtility ReviewedbyAnjaneyulu|UpdatedonSep25,2022 Share Catalogue Introduction Theutilityisthesatisfactionthatanindividualderivesfromconsumingagoodorservice.Similarly,totalutilityisthetotalsatisfactionreceivedfromconsumingagiventotalquantityofagoodorservice.Incontrast,themarginalutilityisthesatisfactiongainedfromconsuminganadditionalquantityofagoodorserviceinquestion. CharacteristicsofTotalUtility Economistssometimesliketosubdivideusefulnessintoindividualunitstheycallutils.Becausetheutilityissubjective,however,itdiffersfrompersontoperson.Sinceitvariesconstantlydependingonthequantityconsumed,autilitycannotbemeasured. However,itissimplyadevicethatallowseconomiststospeakaboutthedegreeofsatisfactionobtainedfromaproductorservice.Althoughonedefinitionofusefulnessisutility,usefulnessisnotaqualityineconomicutility. Forexample,waterisveryuseful,butformostpeople,itdoesn'thavemuchutility.Ontheotherhand,judgingbytherecentmarketpricesforgold,goldisofgreatusetosomepeople,butitisnotveryuseful. RelationshipwithMarginalUtility Onecharacteristicofmarginalutilityisthatforeverysuccessivequantityofaparticulargoodconsumed,italwaysdeclines.Thetotalutilitystartsdecliningwhenmarginalutilitybecomesnegative. Ifyoulikeicecreamandeatit,thefirstscoopwillsatisfyyouthemost.Whenyoueatanotherscoop,you'llprobablystilllikeit,butthesatisfactionwillbelowerthanforthefirstone.Youwon'twanticecreamanymoreatsomepointifyoucontinueeatingitcontinually. Inthiscase,themarginalutilitydecreasestozeroandbecomesevennegative.Thisisadailyillustrationofthediminishingmarginalutilitylaw. Marginalutilityforeverything,includingincome,declines.Whilemanypeoplewanttoaccumulategreatwealth,everyrupeeearnedisworthlesserandlesser,becauseofthemarginalutilityofwhatitcanbuydeclines. RelatedTerms RecentTerms FileGSTReturnswithClearTax Easy-to-use&100%accurateSoftware Auto-computeGSTR-9 Reconcilefiledreturnswithsalesandpurchase SingleclickuploaddatathroughTallyconnector Start30daysfreetrial Trustedby 4million CAAssisted Services Yourdatais safe&private TaxSavingInvestmentMadeSimple OnlyBestFundsPickedbyExperts CompletelyFREE&SimpletoInvest Highestreturnsamong80C Savetaxesupto₹46,800 SaveTax GrowWealth Trustedby 4million CAAssisted Services Yourdatais safe&private #