Using the economists' model of individual choice (comparing the marginal costs and marginal benefits of a choice, incorporating the level of satisfaction or "utility" we derive from the choice, and considering the relative MU/P of a good we buy to that of another), choose, and explain your motivation for four personal decisions you have made in the past year.

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Obviously my purchases will differ from yours. But as an example I will consider the used car I bought last summer. I needed a larger vehicle, since I often have to carry people and things around with me. Newer cars are going to cost more than older ones, but they are more reliable. The marginal utility of the next dollar spend then is what I gain from not having to replace it soon, or have to be making major repairs on it soon. Total utility is what I gain from the entire purchase: being able to do things without borrowing my friend's truck for example. When we divide MU by price, we find the incremental amount of utility each dollar of the purchase gives me. In order to get a feel for ...

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How marginal utility guides our everyday decisions

The attached table displays George's consumption of soda pop and pretzels. The price of each soda pop is $2.00 and the price of each pretzel is $5.00.
A. Fill in the missing total utility, marginalutility, andmarginalutility/price (MU/Price). Place the final answer for each in the correct shaded area within the table.

Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units.

Based on the table, graph the total utility curve of Chad Hobbs for buffalo wings. Secondly, calculate the marginalutility between each point and plot the corresponding graph. Why is the slope of the MU curve negative?
Chad's Utility Function
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# of wings

Q1: Exercise and Total Utility
The table below shows a consumer's total utility from consuming hours of exercise at the gym.
Given this information, what can be said about this consumer's marginalutility curve for exercise?
A) Marginalutility initially decreases, but eventually increases as more exercise is consumed.

You are choosing between two goods, X and Y, and your marginalutility from each is as shown below. if your income is $9 and the price of X and Y are $2 and $1, respectively,
Units of X MarginalUtility for X
1 10

For this problem, assume that Joe has $80 to spend on books and movies each month and that both goods must be purchased whole (no fractional units). Movies cost $8 each and books cost $20 each. Joe's preferences for movies and books are summarized by the following information:
MOVIES

In the workplace you will often see diminishing marginalutility, where the utility (satisfaction experienced per hour of work) experienced by workers drops as they perform their jobs over time. As a manager, what are some practical things you could do to raise utility for employees that also benefit the firm? In your answer us

53. A consumer spends all of her income on two goods, coffee and doughnuts. She purchases coffee at 25 cents a unit with a total utility of 800 and a marginalutility of 12. Doughnuts are purchase at 75 cents a unit with a total utility of 200 and a marginalutility of 24. In order to reach consumer equilibrium, she should co