Principles of Microeconomics / Unit 5 MIC 0402 short lesson, about 20 seconds
Total Utility and Marginal Utility
Captions available
The idea
Total utility is the satisfaction from a whole quantity of a good. Marginal utility is the change in total utility from one more unit, and it falls as the quantity rises.
In practice
The sixth film in a month adds far less than the first did.
Where people slip
Total utility keeps rising while marginal utility is positive. Falling marginal utility does not mean falling total utility.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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