Just when you thought I couldn’t babble more about my MBA classes, here’s my Econs for Managers this evening. All supply and demand; all apples and oranges.
Currently discussing total utility (sum of amount of satisfaction derived from a good) and marginal utility (additional satisfaction due to additional unit of good consumed), summed up in the example below:
| Apples | Total Utility | Marginal Utility |
| 0 | 0 | - |
| 1 | 5 | 5 |
| 2 | 9 | 4 |
| 3 | 12 | 3 |
| 4 | 14 | 2 |
| 5 | 15 | 1 |
| 6 | 15 | 0 |
Okay, so the professor asks us to note that with every extra unit of apple we consume, the less satisfaction we derive from it, till we are completely satisfied (or derive no additional satisfaction) from consuming more units.
I say that, after six apples, you’re likely to be less than happy with the huge tummy-ache you’ll have. Try ‘Economics for Toilet Cleaners’…
.
Copyright © 2002 Kenny Mah Ying Fye.
Kenny Mah believes in the good in people. He has been blogging for over ten years. No, his hands aren't tired. Yet.
No Comments