¶ … Diminishing Marginal Utility is the basis by which a good gets its value in the marketplace? As part of your answer explain the concepts of consumer's preference and consumer's surplus and how they contribute to the valuation process. The concept of diminishing marginal utility holds that the more a consumer consumes something, the less he or she will gain in terms of his or her real and perceived value of that good, from adding additional units of that good to his or her market basket. For example, by offering a discount for every next doughnut purchased at a coffee shop, the owner creates an incentive for a consumer to buy two, rather than one doughnut, thus raising the overall volume of sales. However, if the consumer gains a discount for every additional doughnut, not just the second doughnut, the discount on the third doughnut will not be as important to the consumer as the discount on the second doughnut, as the third doughnut has lost its value to some extent...
Thus, all things being relatively equal a basket with more is more desirable than one with fewer goods for the same price. Or, to take another, real world example, the popularity of supersizing a fast food meal, getting considerably more cola and French fries for what amounts to virtual pocket change, is an incentive to buy the larger meal. Consumer surplus is the difference between what a consumer is willing to pay vs. what he or she must pay. A consumer may feel that he or she is getting a wonderful bargain on the Extra Value meal, because he or she desires more French fries and would pay even more for this tasty treat than a few cents. This is despite the fact…
Differentiations are always brought up by the contemporary mainstream economists and their theories regarding ontological questions and assumptions or mere recognition regarding conformity of preference structures regarding some rules can be approximated usefully. This is done by the commodities' association or there quantities uses. Taking into account that preference can as well be taken as a usefulness determinant, departing of this conception from the usefulness concept should not take place.
Until that time, the lower classes, as they were known, would produce most of what they needed at their own homes, and the upper classes would simply employ the lower classes to produce whatever goods they needed and subsequently purchase them, or employ craftsmen to produce 'quality' goods that were usually required by noblemen. (Elemental Economics: Intermediate Microeconomics) There were also firms that would purchase goods and services and these
The pioneering spirit of colonialism and of man's ability to make advances in stages of life primarily assigned to nature -- such as the aforementioned innovations in electricity and magnetism -- were all championed by the Enlightenment and carried over to the field of industry. Additionally, the Enlightenment helped provide some of the political context which helped to create environments in which the scientific and cultural achievements of the Industrial
A number of economists suggest that markets are efficient, but this efficiency is merely assumed. In this regard, Batten points out that, "There is no actual proof. It is virtually impossible to test for market efficiency since the 'correct' prices cannot be observed. To get over this hurdle, most tests examine the ability of information-based trading strategies to make above-normal returns. But the results of such tests do not
"Idealists" need a unique identity to be fulfilled and, therefore, value authenticity. They are often skilled in interpretation and tend to be impressionistic. Finally, "Rationals" need mastery and self-control to be satisfied and value logical consistency. They are skilled in analyzing situations but they are often oblivious to the world around them. These characteristics can be used to model how people with certain temperaments will respond to potential online dating
Famine, Affluence, And Morality by Peter Singer Peter Singer's 1972 article is intended to provoke thought on the issue of the more fortunate's moral obligation toward the less fortunate. Singer uses the famine in East Bengal to claim that affluent countries and individuals have a moral obligation to give far more than they do to help relieve the suffering and death from lack of food, shelter and medical care experienced in
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now