The total satisfaction derived from consuming the given amount of commodity X is known as _____.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Total utility
Total utility (TU) of a fixed quantity of a commodity is the total satisfaction from consuming that amount of it.
It depends on the quantity consumed. Marginal utility is different: it is the change in total utility from one more unit. For example, 4 bananas give 28 units of total utility and 5 bananas give 30. So the marginal utility of the 5th banana is 2.
NCERT (2026-27): “Measures of Utility Total Utility: Total utility of a fixed quantity of a commodity (TU) is the total satisfaction derived from consuming the given amount of some commodity x. More of commodity x provides more satisfaction to the consumer. TU depends on the quantity of the commodity consumed. Therefore, TUn refers to total utility derived from consuming n units of a commodity x. Marginal Utility: Marginal utility (MU) is the change in total utility due to consumption of one additional unit of a commodity. For example, suppose 4 bananas give us 28 units of total utility and 5 bananas give us 30 units of total utility.…” |