Discussion Do You Maximize Your Utility?
Please answer in 1 page the following:
As we’re well aware, vending machines are used to sell snacks and beverages, whereas newspapers are sold out of a box that allows anyone to take more than one paper.
How does the concept of diminishing marginal utility explain the different distribution techniques for newspapers vs. snacks and beverages?
Identify two additional examples of an item whose diminishing marginal utility is high.
Remember: Marginal utility is the change in total utility that results from a one-unit increase in the quantity of a good consumed; diminishing marginal utility is the general tendency for marginal utility to decrease as the quantity of a good consumed increases.