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.© BrainMass Inc. brainmass.com October 17, 2018, 2:11 am ad1c9bdddf
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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Butler is concerned that the cross-functional team may have individuals on the team who do not understand some of the issues at hand, especially the economic aspects of the decision, including the origins and foundation of the economics of exchange. With only 30 days until recommendations are made to the senior leadership team, Butler has asked you to prepare a workbook for the weekly staff meeting to help the team to understand the background of the upcoming evaluation and decision, beginning with an explanation of the economics of exchange and the economic aspects of the firm. Butler also states that he wants you to explain to the team the concepts of value and utility and how those factors are considered in the decision-making process.View Full Posting Details