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1) Which cup of coffee do you enjoy the most, the first one in the morning or the last one at night? Use the concept of marginal utility to explain your answer.
2) If your guest states, "I could easily stay longer in your house," what can you understand about the marginal utility of his stay in your place? Is it positive or negative? Why? What does his remark tell us about the total utility of his stay? Is it increasing, maximum, or decreasing?
3) If a professor wishes to make his class as enjoyable as possible what should he do about the length of time that he teaches the class--teach for a longer or shorter time? On the other hand, if he wants the students to enjoy the break more, what should he do to the break time--make it longer or shorter? Explain these points using the concept of marginal utility.
d) Why are diamonds more expensive than water in Los Angeles? Use the concept of marginal utility to explain your answer.
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