Final answer:
The total utility curve usually has an increasing shape that flattens over time, reflecting the principle of diminishing marginal utility. Initially steep, the curve's slope reduces as each additional unit consumed adds less to total satisfaction.
Step-by-step explanation:
The shape of a total utility (TU) curve can be described as generally increasing at a decreasing rate. Typically, when a consumer starts to consume a good, the total utility that they derive from the good tends to increase as they consume more. However, the rate at which this satisfaction increases tends to slow down, which is a concept known as diminishing marginal utility. This occurs because each additional unit of the good consumed provides less added satisfaction than the previous unit. Therefore, the TU curve usually starts off steep and flattens out as consumption increases, reflecting the diminishing additional utility that comes with each additional unit consumed.
The total utility a consumer has can be graphically represented by a curve that maps out the relationship between the quantity of a good consumed and the level of satisfaction derived from that consumption. For example, consider a scenario where José is both a T-shirt collector and a movie enthusiast. As he increases his collection of T-shirts, the total utility derived from his collection grows. If we plot out a graph where the x-axis represents the number of T-shirts and the y-axis represents the utility, we'd see the curve going up as more T-shirts are added but with a flattening slope as the incremental addition to utility decreases with each T-shirt.
In the early stages of consumption, the marginal utility, which can be considered as the derivative of the total utility function, is relatively high, but as consumption increases, marginal utility decreases. This principle can also be associated with the concept of indifference curves in which higher curves represent higher utility levels. Consumers prefer to be on a higher indifference curve because it indicates a higher utility level. However, the budget constraint that consumers face due to limited income dictates how much of two goods a consumer can afford, combining the concept of utility with economic reality.