Relationship between marginal and total utility

Relationship between marginal and total utility:

We know that we can get the marginal utility through finding out the change in total utility due to a unit change in goods consumed. So there is a relationship between M. U. and T. U. The relationship has been described below:

1) When total utility increases at a constant rate then marginal utility remains constant.

2) When total utility increases at an increasing rate then marginal utility also increases.

3) When total utility increases at a decreasing rate, marginal utility also begins to decrease.

4) When total utility is at the highest level, then marginal utility equals to zero.

5) When total utility begins to decrease, then the marginal utility becomes negative.

The following diagram will better disclose above points.

The above figures show that MU is of diminishing type in character. But MU is positive up to that point when TU is increasing whether at a increasing or at a decreasing rate. When TU is highest at pint E then MU is equal to zero at point B, which refers to the same units of good consumed at point E. After that, point TU begins to decline then MU becomes negative.

So, we can easily conclude saying that there is a huge relationship between MU and TU.