1. Give at least 2 examples of situations when you use utility to make decisions. For each example give at least 2 parameters that would affect your decision. For example, when purchasing a home you may have to decide between the one with the larger kitchen or the one with the larger closets. Or when purchasing an automobile, you must decide between the larger trunk or the one with four doors. You have to weigh the benefits from more storage space as compared to increased accessibility. Please use a different example from homes and cars. Be creative. We make these kinds of choices everyday.
2. You did such a great job in the 4th grade class last week that you have been invited back to explain diminishing marginal utility. Explain the concept in everyday language (not the textbook language) and give at least 2 examples that the class will understand.
Two examples of situations when I use utility to make decisions.
1] Eating out. Two parameters I use for eating out are the average price per head for a meal and another parameter is the quality of that food. For instance, I might be able to find a low cost per head treating people to meals at a chain fast food restaurant, but I feel the food is of the lowest quality. However, I very elite, world-restaurant may cost $100 or more person than I want to spend even if I think the food is the very best. I balance these perhaps with a casual dining person that is better than fast food and costs more, but ...
The expert gives two examples of situations when you use utility.