Total utility is the overall satisfaction or benefit a person gets from consuming a specific amount of a good or service during a set period.

Key points:

• Total utility generally grows as you consume more, because each extra unit contributes more happiness.
• Scientists measure this satisfaction using imaginary units called utils.
• How quickly total utility grows depends on the marginal utility (the extra satisfaction from one more unit).

Formula:

Total utility = Sum of the marginal utility of every unit consumed.

Understanding the trend:

• Total utility goes up as long as marginal utility is positive.
• It reaches its highest point when marginal utility is zero.
• Total utility starts to decrease if you consume so much that marginal utility becomes negative.