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Total Utility and Marginal Utility

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Using the Diamond-Water Paradox as a guide, use two other goods of your choice to illustrate the concept and explain the roles played by total utility and marginal utility.

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Total Utility and Marginal Utility are explained in a structured manner in this response. The answer includes references used.

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Two other goods of my choice are electricity and gold. The total utility of electricity to people is very high because it is needed to survive. However, since electricity is in such large supply, the marginal utility of electricity is low. Each extra unit of electricity can be applied to less urgent uses as more urgent uses of ...

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Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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