Finally, I demonstrate that the Marginal Rate of Substitution has an advantage over Marginal Utility in terms of describing preferences and behavior (Section X), because it is less sensitive to the exact utility function you choose to use! Story Explanation of the Marginal Rate of Substitution Oct 13, 2011 · A short tutorial on calculating marginal utility. ... TOTAL AND MARGINAL UTILITY AND THE LAW OF DIMINISHING MARGINAL UTILITY - Duration: ... Food Costs Formula: ...

The relation between total and marginal utility is explained with the help of Table 1. So long as total utility is increasing, marginal utility is decreasing up to the 4th unit. When total utility is maximum at the 5th unit, marginal utility is zero. It is the point of satiety for the consumer. May 09, 2017 · This lesson introduces and analyzes the relationship between the level of consumption of a particular good and the consumer's total and marginal utility derived from the good's consumption.