If you understand Economics come hitler

[pl8er]

I need an answer to this:

b. Give an example where the purchase of a good or service does not have diminishing marginal utility.

[IDSkot]

I think that's impossible...

[IDSkot]

You'd have to have a product that was at perfect condition, and evolved with technology.
Or just be really weird.

I guess a Guitar could be? But, even guitars degrade.

[pl8er]

Well knowledge is one. But I don't want to use that one. You can keep getting that and never get your fill

[IDSkot]

Well knowledge is one. But I don't want to use that one. You can keep getting that and never get your fill

Learning how to do something. Such as playing an instrument, or drive a car.

[pl8er]

I think that is a different way of saying knowledge. But I like it! I'll go with that.

[hoss]

A house? I dont know that I understand what it is asking... You are looking for something that you can pay for, and said item should retain its complete functionality and always be in need to you?

[pl8er]

No more of a scenario like this.

Lets say your starving....so you go and eat a sandwich....you eat a 2nd one (now not as good as the first) you actually hit a point where eating another one (spending money) serves no purpose and actually is a negative to you. I need something that you could buy and buy and buy and never need to stop.

Guitar lessons actually works.

[IDSkot]

A house? I dont know that I understand what it is asking... You are looking for something that you can pay for, and said item should retain its complete functionality and always be in need to you?

Marginal utility is the satisfaction you get from ANYTHING (may it be a service, or a product.) If you buy a house, it has a chance of degrading, and you lose satisfaction of it. Same as a car, and most other products. (infact, all.) Such as, when you first get your subs, you're like, 'FUCK YEAH! These things rock!' And, as time goes by, may it be a short time, or a long time, you begin to lose marginal utility for that item. When you get new ones, you get new marginal utility for that item.
Knowledge is the only thing you can use that doesn't have descending marginal utility. Well, that I can think of, really. Everything degrades, or becomes obsolete with time, due to advancing technology.

Oh, BTW: I have an A in Economics. lmao.

[pl8er]

Alright....well one more then.....can you answer this?


The Law of Diminishing Utility

Units consumed Total utility Marginal utility
0 0
1 10 10
2 18 8
3 25 7
4 30 5
5 33 3
6 34 1

________________________________________
Figure 3:Complete the missing data for coffee purchase.
d. In a Word document, answer the question below:
a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know?

[JimJ]

Total utility increases in a decreasing rate, as it's flattening out...

[pl8er]

Thanks Jim, I was reading that incorrectly. I thought I had to explain each one, not just choose one.

[pl8er]

The answer is that the total utility is increasing at a decreasing rate ;).

[IDSkot]

Alright....well one more then.....can you answer this?


The Law of Diminishing Utility

Units consumed Total utility Marginal utility
0 0
1 10 10
2 18 8
3 25 7
4 30 5
5 33 3
6 34 1

________________________________________
Figure 3:Complete the missing data for coffee purchase.
d. In a Word document, answer the question below:
a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know?


Decreasing rate.

[tapout]

No more of a scenario like this.

Lets say your starving....so you go and eat a sandwich....you eat a 2nd one (now not as good as the first) you actually hit a point where eating another one (spending money) serves no purpose and actually is a negative to you. I need something that you could buy and buy and buy and never need to stop.

Guitar lessons actually works.
To go with your knowledge thought, education seems to be a good answer.

[IDSkot]

To go with your knowledge thought, education seems to be a good answer.

Can you set my join date to December 21, 2012?

[tapout]

for $20, anything is possible.

[IDSkot]

for $20, anything is possible.

I can give you $20 Monopoly money?

[farmerehsan]

hah im takin this shit online right now

[Tiger Bass]

I would say even knowledge is gained at a diminishing marginal value. Think about how much you learn sitting in a lecture. The first 30 minutes, you probably retain almost everything if you're paying attention. As time goes on, you will increase your total overall amount of knowledge, but in those last few minutes before class is let out, I doubt you retain even half as much information as given.

Honestly, I can't think of a single situation where the Law of Diminishing Returns isn't applicable.

[IDSkot]

I would say even knowledge is gained at a diminishing value. Think about how much you learn sitting in a lecture. The first 30 minutes, you probably retain almost everything if you're paying attention. As time goes on, you will increase your total overall amount of knowledge, but in those last few minutes before class is let out, I doubt you retain even half as much information as given.

Honestly, I can't think of a single situation where the Law of Diminishing Returns isn't applicable.

I suppose. You are a lot happier when you first learn how to play Guitar. But, you're constantly learning with Guitar, so, for me at least, there hasn't been any diminishing return.

[Tiger Bass]

I suppose. You are a lot happier when you first learn how to play Guitar. But, you're constantly learning with Guitar, so, for me at least, there hasn't been any diminishing return.
I see what you're saying, in that it is completely your opinion as to whether or not you're seeing a diminishing marginal utility.

If the teacher is looking for a scenario where there actually ISN'T diminishing marginal utility, I would say your best bet is going with something like you've stated.

Otherwise, it seems like the much safer bet would be to say that the marginal utility on the increasing consumption of a good or service is always diminishing.

[bluecar]

Ask a crackhead.

Goal is to get higher and higher each time.

[Tiger Bass]

If you go with the knowledge/guitar idea though, be prepared to state whether the marginal utility is constant or increasing since it's not diminishing, and explain your reasoning to that.

[Sex Cells]

Information is not necessarily knowledge.

[Sex Cells]

Use God as one, you can never has too much god.

[bluecar]

Use God as one, you can never has too much god.

I went with that at first...but thought crack cocain would bring more lols.

[Sex Cells]

I went with that at first...but thought crack cocain would bring more lols.

I lol'd.

What about statutory rape?

[bluecar]

I lol'd.

What about statutory rape?

rape/murder in general for crazies, sure.

[Sex Cells]

bailout plans?

[Sex Cells]

body language?

[bluecar]

bailout plans?

they had zero utility initially.

[Tiger Bass]

Now that I think about it, even the learning to play guitar idea has it's flaws. You can't really compare marginal utility across a gap of time, otherwise it will pretty much be steady.

Ie. the marginal utility of eating to sustain life vs the marginal utility of eating at an all you can eat buffet. The marginal utility of eating food day to day is pretty much constant. However, eating that 5th plate at the buffet is definitely not as satisfying as the first one.

So, the 1st hour in a jam session of learning to play your guitar is pretty awesome, but you can't keep playing it straight through. Sooner or later, you're going to get hungry, need to use the bathroom, sleep, etc. The marginal utility of continuing to play guitar will be diminishing because you would much rather be doing something else, like sleeping.

[bluecar]

Now that I think about it, even the learning to play guitar idea has it's flaws. You can't really compare marginal utility across a gap of time, otherwise it will pretty much be steady.

Ie. the marginal utility of eating to sustain life vs the marginal utility of eating at an all you can eat buffet. The marginal utility of eating food day to day is pretty much constant. However, eating that 5th plate at the buffet is definitely not as satisfying as the first one.

So, the 1st hour in a jam session of learning to play your guitar is pretty awesome, but you can't keep playing it straight through. Sooner or later, you're going to get hungry, need to use the bathroom, sleep, etc. The marginal utility of continuing to play guitar will be diminishing because you would much rather be doing something else, like sleeping.

However, if you were not rational then the marginal utility would remain constant.

Drug use, execessive religious beliefs, rape, murder, theft, lying etc require a hint of irrational behavior.

[Tiger Bass]

However, if you were not rational then the marginal utility would remain constant.

Drug use, execessive religious beliefs, rape, murder, theft, lying etc require a hint of irrational behavior.
I know you were just trolling...but I think you're on to something there.

[Sex Cells]

irrational according to who?

[Sex Cells]

not phil.

[bluecar]

I know you were just trolling...but I think you're on to something there.

Not really.

How else would marginal utility remain constant?

Rational behavior requires us to seek the highest and best use of our time and energy. Therefore, whenever we consume, we should be thinking is this the best use of my time. After you are full (in the buffet example) continuing to consume is not the highest and best use...therefore you begin to seek other mechanisms for excitement, fun, etc.

If a person is irrational they become fixated on something, perhaps, rape. They tend to rape and rape again because the feeling of power is not satisfied by just raping two or three times. They continue to rape.

[pl8er]

I would say even knowledge is gained at a diminishing marginal value. Think about how much you learn sitting in a lecture. The first 30 minutes, you probably retain almost everything if you're paying attention. As time goes on, you will increase your total overall amount of knowledge, but in those last few minutes before class is let out, I doubt you retain even half as much information as given.

Honestly, I can't think of a single situation where the Law of Diminishing Returns isn't applicable.

i'm going to have to agree here. Although I think it still fits the question, even though it could be disputed. Enough of anything is too much.

[pl8er]

This may be a bit over thought by everyone though (I was doing the same thing). Food is the easiest. You have to relate this to economics. If you were STARVING...I mean flat out starving....the amount you would pay for a hamburger would be limited only by your finances. If you had 1,000 and that is the least I would take for a hamburger, you would do it. If your options were death or hamburger, of course. Now after you ate one if you had money left and I said I'll give you a 2nd for the same price (if you had the cash) you may do it. But by 5 or 6 you are full and even if I offered one for free, you may not take it.

So I have to find something that breaks that rule. That you can never be totally full of. No matter how much you put into it, you can keep going. Education works in a way because you can just keep paying and paying and paying and learning and learning and learning (if you wanted to) It's a hard question really. I need Flip :P

I did put guitar lessons (because you could continue paying forever and still never get your fill) and education as a generalization.

[Tiger Bass]

Edited.

[bluecar]

[QUOTE=Tiger Bass;15720]Fl--0-UOTE]

edit post

[pl8er]

Well that gets a

http://i95.photobucket.com/albums/l156/sweets4ever48/themoreyouknow.jpg

[Tiger Bass]

This may be a bit over thought by everyone though (I was doing the same thing). Food is the easiest. You have to relate this to economics. If you were STARVING...I mean flat out starving....the amount you would pay for a hamburger would be limited only by your finances. If you had 1,000 and that is the least I would take for a hamburger, you would do it. If your options were death or hamburger, of course. Now after you ate one if you had money left and I said I'll give you a 2nd for the same price (if you had the cash) you may do it. But by 5 or 6 you are full and even if I offered one for free, you may not take it.

So I have to find something that breaks that rule. That you can never be totally full of. No matter how much you put into it, you can keep going. Education works in a way because you can just keep paying and paying and paying and learning and learning and learning (if you wanted to) It's a hard question really. I need Flip :P

I did put guitar lessons (because you could continue paying forever and still never get your fill) and education as a generalization.
That doesn't work because as a certain point of education, it becomes a waste of a time and money. You're marginal utility will begin decreasing. You will prefer to find other things to do with your time and resources.

[Tiger Bass]

edit post
Edit your post!!

[bluecar]

That doesn't work because as a certain point of education, it becomes a waste of a time and money. You're marginal utility will begin decreasing. You will prefer to find other things to do with your time and resources.

This is why a constant marginal utility requires irrationality.

[pl8er]

That doesn't work because as a certain point of education, it becomes a waste of a time and money. You're marginal utility will begin decreasing. You will prefer to find other things to do with your time and resources.

This ended up being a very hard question indeed. I guess I will just have to wait and see what he says to me.

[pl8er]

Is my understanding of this at least close CAPTAIN INSANO?(do I have to start calling you bluecar?)

[bluecar]

Is my understanding of this at 7bhbcbvI have to start hghgd?)

Yes.

Most just say blue

Please edit your post.

[Tiger Bass]

This is why a constant marginal utility requires irrationality.
Indeed. When I started to really think about it, that's the only thing I could come up with. People who are insane.

[bluecar]

Indeed. When I started to really think about it, that's the only thing I could come up with. People who are insane.

Because that's how marginal utility works, mang.

Now pl8rs choice is whether he wants make up a story to get the lols.

[pl8er]

No go on the "lol's" Last time I made a joke the professor ripped my ass about using economical logic and leaving out "stereotypical cliches"

[Tiger Bass]

I got lol's in my economic development class. Teacher proposed the question "Why do poor countries have higher birth rates"

I said they were bored since they don't have a job to go to and it's the most economical form of entertainment. It took my teacher a second to get it, but it got lol's from the whole class.

[pl8er]

me = online.

Some of it may be lost in the text.

[bluecar]

me = online.

Some of it may be lost in the text.

Just use examples of irrational behavior. Rationality is an economic term...nearly every model either implicitly or explicitly assumes rational behavior.

[pl8er]

Someone put electricity. Said no matter how many times you turn the switch, you get no less or more satisfaction. The only time you lose satisfaction is if you hit the switch and the light does not come on.

Pretty good example IMO.

[bluecar]

Someone put electricity. Said no matter how many times you turn the switch, you get no less or more satisfaction. The only time you lose satisfaction is if you hit the switch and the light does not come on.

Pretty good example IMO.

That wouldn't work in upper level classrooms.

Here's why:

Electricity is measured in units, namely kWh.

Starting from zero, the utility of the kWh "humps" like everything else...like the food example, one cannot consumer kWh at steady rates; futhermore, the value of an additional kWh at night is zero, as you are using few kWh.

Your class isn't measuring the units to determine utility.