Economics Discussion Board

23Jan 2022 by

Unit 4 Discussion Board

Discussion Topic: Diminishing Marginal Utility

Pretend that
you have just been surprised with a genuine email that says you have just
been selected by your favorite pizza delivery company that every day for
the next month you will receive your favorite pizza for lunch and another
of that same favorite pizza for dinner, delivered to your home and ready
to eat.

Using the
concept of diminishing marginal utility, discuss how excited you will be
on the first day of your winning.

What about
your excitement on the 10th day?

What about
your excitement on the 30th day?

Now, pretend
that your favorite national brand gasoline company informs you that you have
won as much as you want free gasoline, as much as you want, from any of
their gas stations, anywhere in the country every day for a year.

Using the
concept of diminishing marginal utility, discuss how excited you will be
on the first day of your winning

What about
your excitement on the 10th day?

What about
your excitement on the 30th day?

Again,
considering the concept of utility, what makes these two scenarios
different?

 

 

Unit 5 Discussion Board

Discussion Topic: Tailored Clothes

Assume that
you were ready to buy a custom tailored dress (or men’s suit) and you are
prepared to pay up to $200 for it. Also assume that the tailor is prepared
to sell that item of clothing for as little as $100. When you arrive at
the tailor shop, the posted price for the item is $150. Discuss how this
scenario relates to producer and consumer surplus and how such surpluses,
if any, affect buying and manufacturing decisions.

Discuss any
recent purchases you have made and for which you feel that a similar rationale
seemed to be at work.