1. For each of the following situations, decide whether Al has
increasing, constant, or diminishing marginal utility.
a. The more economics classes Al takes, the more he enjoys
the subject. And the more classes he takes, the easier each
one gets, making him enjoy each additional class even
more than the one before.
b. Al likes loud music. In fact, according to him, “the louder,
the better.” Each time he turns the volume up a notch, he
adds 5 utils to his total utility.
c. Al enjoys watching old episodes of the sitcom Friends. He
claims that old episodes are always funny, but he does
admit that the more he sees an episode, the less funny it
gets.
d. Al loves toasted marshmallows. The more he eats, however,
the fuller he gets and the less he enjoys each additional
marshmallow. And there is a point at which he becomes
satiated: beyond that point, more marshmallows actually
make him feel worse rather than better.
( MICROECONOMICS)