Total utility and marginal utility help us understand why people buy things.
Total Utility: This is how much happiness you get from using all of a product or service. Imagine how happy you feel after finishing a whole pizza!
Marginal Utility: This is about the extra happiness you get from having just one more of something. For instance, the joy you feel from eating that last slice of pizza might not be as big as the joy from the first few slices.
So, total utility looks at the whole picture, while marginal utility zooms in on the little details!
Total utility and marginal utility help us understand why people buy things.
Total Utility: This is how much happiness you get from using all of a product or service. Imagine how happy you feel after finishing a whole pizza!
Marginal Utility: This is about the extra happiness you get from having just one more of something. For instance, the joy you feel from eating that last slice of pizza might not be as big as the joy from the first few slices.
So, total utility looks at the whole picture, while marginal utility zooms in on the little details!