Marginal Utility Calculator
This marginal utility tool is used to measure how much value or satisfaction a consumer gets out of consuming your products or service.
How to Calculate Marginal Utility
Marginal utility is measures the increase in satisfaction consumers gain from consuming an extra unit of a goods or services.Marginal utility is calculated by taking the difference in total utilities, and dividing by the change in quantity consumed.
Marginal Utility =
TUi - Total Utility at Qi Units
TUf - Total Utility at Qf Units
Qi - No. of Units Consumed Initially
Qf - No. of Units Consumed Finally
Utility is the satisfaction a person derives from the consumption of a good or service. Total utility is the total satisfaction received from consuming a given total quantity of a good or service, while marginal utility is the satisfaction gained from consuming an additional quantity of that item.
Example: Utility Table
|Quantity Consumed||Total Utility (sum of utility from consumption)||Marginal Utility (change in total utility divided by change in quantity consumed)||Average Utility (total utility divided by total quantity consumed)|
|1||50||50||= 50/1 = 50|
|2||90||40||= 90/2 = 45|
|3||120||30||= 120/3 = 40|