Utility is the pleasure and usefulness derived from a product. Total utility is the total utility that we derive from a product.
It is normally considered that the marginal utility declines if a person consumes or makes use of the same product again and again because she tends to get bored or used to the product, thereby receiving less pleasure from it. Taking up the burger example again, if a person continues to eat the burgers one after the other, then she will get bored of eating them because she will get used to the taste.
An easy to understand marginal utility example would be that of thirst. If a person is very thirsty and drinks water, then the utility gained would be high. However, if the person was not thirsty and drinks water, then the utility gained would be very less.
Marginal utility, as the name suggests, is the extra utility that is derived from a product. If a person eats 3 burgers, the marginal utility would be the utility that she derived from the last two burgers.
It is normally considered that the marginal utility declines if a person consumes or makes use of the same product again and again because she tends to get bored or used to the product, thereby receiving less pleasure from it. Taking up the burger example again, if a person continues to eat the burgers one after the other, then she will get bored of eating them because she will get used to the taste.
Common example of taste perception
First burger: Wow, tasty, Second Burger: Yum, Third Burger: Good, Fourth Burger, Nice, Fifth Burger: Hmm, Fine, Sixth Burger: Uh, bad."
If a person continues to eat burgers one after the other (which is unlikely) then a point will come when the person falls sick and negative utility will occur.
An easy to understand marginal utility example would be that of thirst. If a person is very thirsty and drinks water, then the utility gained would be high. However, if the person was not thirsty and drinks water, then the utility gained would be very less.
The table below shows us how marginal utility decreases when we consume a new product.
The table shows us that that the marginal utility is declining as we keep on consuming the same product again and again. If this table was continued below then it would result in negative marginal utility which would result in negative total utility.
Important Note: The usefulness and pleasure derived from a product i.e. utility can vary from person to person and from product to product.
Important Note: The usefulness and pleasure derived from a product i.e. utility can vary from person to person and from product to product.