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Utility Concepts

Cardinal, Ordinal, Total, Average, and Marginal Utility

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Understanding Utility

1 Cardinal Utility

Utility that can be measured in exact numbers. For example, "This banana gives me 10 utils of satisfaction."

🍌

Example: Banana = 10 utils

Measurable satisfaction

2 Ordinal Utility

Utility expressed as preferences or rankings. "I prefer bananas to apples" without exact numbers.

🍌 Banana

>

🍎 Apple

3 Total, Average & Marginal Utility

Total Utility (TU)

Total satisfaction from all units consumed

Average Utility (AU)

TU divided by quantity consumed

Marginal Utility (MU)

Extra satisfaction from one more unit

Interactive Utility Calculator

Enter utility values for each slice of pizza Chika eats. The table will automatically calculate TU, AU, and MU!

Good:

Quantity	Total Utility (TU)	Average Utility (AU)	Marginal Utility (MU)
1	20	20.0	20
2	35	17.5	15
3	45	15.0	10
4	50	12.5	5

Drag & Drop Quiz

Match the utility types to their correct definitions:

Utility Types

Cardinal Utility

Ordinal Utility

Marginal Utility

Definitions

Satisfaction measured in exact numbers (e.g., 10 utils)

Satisfaction expressed as preferences or rankings

Additional satisfaction from consuming one more unit

Topic Sections

star Key Points

check_circle Cardinal utility uses exact numbers, ordinal uses rankings

check_circle Marginal utility typically decreases with each additional unit

check_circle TU = sum of all MU values

check_circle AU = TU ÷ Quantity consumed

Your Progress

Indifference Curves & Budget Lines

Consumer Preferences and Budget Constraints

Build Your Indifference Curve

Budget (₦) ₦100

Price Ratio 1:1

Good X (Juice)

5

Price: ₦10

Good Y (Snacks)

5

Price: ₦10

person

Market Day with Chika

"It's Saturday morning and Chika has ₦100 to spend at the school tuck shop. She loves both Puff Puff (₦10 each) and Coke (₦20 each). Let's help her make the best choice!"

🥯

Puff Puff

₦10 each

🥤

Coke

₦20 each

Help Chika choose her optimal combination:

Lesson Sections

psychology Key Concepts

check_circle Indifference curves are convex to origin

check_circle Budget line shows affordable combinations

check_circle Equilibrium is where curve touches budget line

check_circle Higher curves represent higher satisfaction

Current Combination

Budget: ₦100

Juice: 5 units

Snacks: 5 units

Total Spent: ₦100

TP, AP, MP Relationships

Total Product, Average Product, and Marginal Product

Topic Progress

60%

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Core Concepts

1 Total Product (TP)

The total output produced by all units of a variable factor (like labor) with fixed factors (like capital).

Formula: TP = Q (Total Quantity of Output)

2 Average Product (AP)

The output per unit of variable factor. It shows productivity per worker or per unit of input.

Formula: AP = TP / Number of Workers (or Variable Input)

3 Marginal Product (MP)

The additional output produced by adding one more unit of variable factor.

Formula: MP = Change in TP / Change in Variable Input

Interactive Production Chart

Adjust the number of workers to see how TP, AP, and MP change. Notice the relationships between these curves!

Workers: 5

Total Product

125

Average Product

25

Marginal Product

15

Topic Sections

star Key Points

check_circle MP curve intersects AP curve at AP's maximum point

check_circle When MP > AP, AP is rising

check_circle When MP < AP, AP is falling

check_circle TP reaches maximum when MP = 0

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Algebra Medium

If 3x + 7 = 22, what is the value of x?

A) x = 3

B) x = 4

C) x = 5

D) x = 7

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TP, AP, MP Relationships

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Utility Concepts

Indifference Curves

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Market Day with Chika

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Progress Report

Utility Concepts

Understanding Utility

1 Cardinal Utility

2 Ordinal Utility

3 Total, Average & Marginal Utility

Total Utility (TU)

Average Utility (AU)

Marginal Utility (MU)

Interactive Utility Calculator

Drag & Drop Quiz

Utility Types

Definitions

Topic Sections

star Key Points

Your Progress

Indifference Curves & Budget Lines

Build Your Indifference Curve

Market Day with Chika

Lesson Sections

psychology Key Concepts

Current Combination

TP, AP, MP Relationships

Core Concepts

1 Total Product (TP)

2 Average Product (AP)

3 Marginal Product (MP)

Interactive Production Chart

Topic Sections

star Key Points

Your Progress

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Mathematics

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Physics

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Mathematics Practice

If 3x + 7 = 22, what is the value of x?

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