Question - The new Spooky Tooth album just came out. You have listened to it six times today and experienced the units of utility per listen shown below:
LISTEN UTILITY
1 15
2 14
3 12
4 9
5 5
6 0
1) Using excel or neatly creating by hand and scanning, draw a graph (as seen in the assigned material) showing marginal utility. Explain what it means.
2) Make graph of total utility. Explain what it means.
3) In order to maximize utility, how many times should the album be listened to? Provide an explanation.
4) In terms of utility, what might get you to switch to another activity before the point of maximum utility is reached?
5) How can marginal utility be used as a guiding principle when deciding how many people to hire for a business? Select a business not already used by another student to use as an example.