1. Pretend that you have
just been surprised with a genuine e-mail that says you have just been selected
by your favorite pizza delivery company that every day for the next month you
will receive your favorite pizza for lunch and another of that same favorite
pizza for dinner, delivered to your home and ready to eat.
a.Using the concept of
diminishing marginal utility, discuss how excited you will be on the first day
of your winning.
b.What about your
excitement on the 10th day?
c.What about your
excitement on the 30th day?
2. Now, pretend that
your favorite national brand gasoline company informs you that you have won as
much as you want free gasoline, as much as you want, from any of their gas
stations, anywhere in the country every day for a year.
a.Using the concept of
diminishing marginal utility, discuss how excited you will be on the first day
of your winning.
b.What about your
excitement on the 10th day?
c.What about your
excitement on the 30th day?
3. Again, considering
the concept of utility, what makes these two scenarios different?
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