Zero marginal utility is when having more of an item brings no extra measure of satisfaction. For example, if you receive two copies of the same issue of a magazine, that extra copy has little added value. Positive marginal utility is when buying extra versions of an item is satisfying.
Also Know, what do you mean by marginal utility? In economics, utility is the satisfaction or benefit derived by consuming a product; thus the marginal utility of a goods or service is the change in the utility from an increase in the consumption of that good or service.
Keeping this in view, what is the formula for total utility?
To find total utility economists use the following basic total utility formula: TU = U1 MU2 MU3 … The total utility is equal to the sum of utils gained from each unit of consumption. In the equation, each unit of consumption is expected to have slightly less utility as more units are consumed.
What is marginal utility per dollar?
The marginal utility per dollar spent is the marginal utility obtained from the last unit of a good consumed divided by the price of the good.