Marginal Benefits Against Marginal Cost | Best Homework Help

A factor that drove Luke’s marginal belief to continue in exceeding the marginal costs was money, fame, and recognition. A gift or reward would make one to eat 50 or more eggs. After consuming 20 eggs, he appeared to be in so much pain but nevertheless continued to eat the rest. He continued because he was sure that there was a reward that would be beneficial to him.

How Luke’s Decision Would Change

If Luke was to pay for each egg, then he would not have eaten as many eggs as he initially did since this would mean that it would be very expensive for him, where he would end up using his own money. In this scenario, eating the eggs had an added advantage to him, which made him focus on finishing his eggs despite the challenges of finishing fifty of them. He was motivated by the fact that there were no further charges that he would have incurred.

The Concept of Marginal Utility Per Dollar Spent (i.e. MU/P)

Marginal utility involves the change of a utility as a result of an increase in the good/service consumption. This means that when a utility cost is increased, then it reduces its consumption of a given product where a person may opt to consume an alternative or substitute for the product (Kushlev, Heintzelman and Oishi 74).

A Decision Made on Marginal Utility Per Dollar Spent

On one personal encounter, there were two unique brands of shoes, which were both great looking and had been my favorite choices. However, I had to choose one based on its general appearance and other details such as comfort. However, on enquiring about the pricing of the two pairs, the one I preferred over the other was relatively way more expensive than my initial budget. Therefore, I had to go for the second pair, which was within my budget limit. However, by choosing the shoe, I incurred less amount and got one of my favorite pairs.

 

 

Works Cited

Kushlev, K., et al. “The declining marginal utility of social time for subjective well-being.” Journal of Research in Personality (2018): 74, 124-140.

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Marginal Benefits Against Marginal Cost | Best Homework Help . (2022, July 25). Essay Writing . Retrieved August 13, 2022, from https://www.essay-writing.com/samples/marginal-benefits-against-marginal-cost/
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