ECN 203 Lecture Notes - Lecture 2: Psa Tu Engine, Marginal Product, Marginal Utility
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443: if time is not scarce, consume until you are fully satiated from each choice, mu1/hr= 0 & mu2/hr=0 & mu3/hr=0 & . Table c: value of the marginal product (v) of each hour spent fishing. Table a- marginal product for each of his labor hours. This means for every hour of fishing he catches that number of fish (column 2) Note that this does not mean the total number caught, that is signified in column 3. When he first starts he is figuring out the logistics (what bait works best, best place to fish, etc. ), then his mp grows, only to diminish as he get"s tired. No definite answer on when to stop, this is determined by the worth (utility) of each fish caught. Table b- marginal utility derived from each fish he consumes. This decreases, because after every fish caught, he looses excitement. Table c: value of the marginal product (v) for each hour fishing.
