TOTAL UTILITY: The total satisfaction of wants and needs obtained from the use or consumption of a good or service. This is the cumulative amount of utility generated from consuming a good over a given time period. Total utility is most often used in consumer demand theory to indicate how much overall satisfaction someone obtains from a given activity. The primary behavioral motivation used in consumer demand theory is the goal of maximizing total utility. Total utility is also used to derive marginal utility.Total utility is the overall amount of satisfaction generated from consuming a good. This concept forms the starting point for the analysis of consumer behavior used to explain market demand and the law of demand. Total utility information is commonly presented in a table or represented by a total utility curve. Total utility needs to be contrasted with the related term marginal utility. Total utility is the overall amount of satisfaction obtained from consuming several units of a good. Marginal utility is the additional amount of satisfaction obtained from consuming one additional unit of a good. While the maximization of total utility represents the ultimate goal of consumption, a great deal of consumer behavior hinges on the marginal utility obtained from each unit of a good. Riding a CoasterTo illustrate total utility, consider the total utility generated when Edgar Millbottom, Shady Valley's resident roller coaster aficionado, by spending the day riding the Monster Loop Death Plunge roller coaster at the local Shady Valley Amusement Park. Edgar takes 8 separate rides on the Monster Loop Death Plunge roller coaster, graciously recording the total utility he accumulates after each ride.
The Consumption UnitThe quantification of total utility and the differentiation with marginal utility requires a clear designation of the good being consumed. In other words, what exactly is the consumption unit?Suppose, for example, that Edgar spends the entire day at the Shady Valley Amusement Park riding the Monster Loop Death Plunge roller coaster. Total utility is the overall satisfaction of his roller-costing-riding wants and needs generated from ALL rides on the Monster Loop Death Plunge roller coaster during the day. Marginal utility is then the satisfaction generated from a single ride. The consumption unit, however, could be expanded or narrowed depending on the focus of the analysis. For example, total utility could be the satisfaction generated during an entire summer spent riding the Monster Loop Death Plunge roller coaster at the Shady Valley Amusement Park, while marginal utility is the satisfaction derived each day of riding. Alternatively, total utility could be the satisfaction from a single ride on the Monster Loop Death Plunge roller coaster, while marginal utility is the satisfaction from each second spent on the ride. The consumption unit used for specifying total and marginal largely depends on the specific analysis. Economists are usually most concerned with incremental units that are purchased separately. If Edgar pays for each second he spends on the Monster Loop Death Plunge roller coaster, then total utility per ride and marginal utility per second of a ride is the best breakdown. However, if Edgar pays for each ride, then total utility per day and marginal utility per ride is appropriate. The Total Utility Curve
Perusing the curve offers a few tidbits of information:
A Final Word About SlopeOne last observation is that the total utility curve initially has a relatively steep, positive slope, which then flattens, and eventually turns negative. The slope of the curve has a direct bearing on marginal utility. It also reflects the law of diminishing marginal utility.In particular, the slope of the total utility curve is marginal utility. The slope of any curve is the "rise" over the "run," which is the change in the vertical axis (utility) divided by the change in the horizontal axis (rides). Marginal utility is specified as the change in total utility divided by the change in quantity. The two concepts are one and the same. Marginal utility IS the slope of the total utility curve. Check Out These Related Terms... | marginal utility | total utility curve | marginal utility curve | law of diminishing marginal utility | Or For A Little Background... | util | utility | consumer demand theory | utility analysis | satisfaction | And For Further Study... | utility maximization | constrained utility maximization | rule of consumer equilibrium | utility measurement | cardinal utility | ordinal utility | diamond-water paradox | marginal utility and demand | utilitarianism | income change, utility analysis | price change, utility analysis | preferences change, utility analysis | total product | total cost | total variable cost | ![]() Recommended Citation: TOTAL UTILITY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 9, 2025]. |