ECO 1021 microeconomics
The theory of utility maximisation is about the conscious effort of consumers to maximise their level of satisfaction whenever they consume a particular good or service. This feeling of satisfaction that is enjoyed is known as positive utility, and is measured in the unit known as “utils”.
You, as a consumer, are required to choose ONE good or service that you consume – it can be any type of commodity that you consume in your everyday life, for example: playing computer games, exercising, eating a bowl of curry noodles, shopping for clothes, reading story books, and so on. Once you have selected ONE good or service, think about your utility levels as you consume more and more units. Do you think the more you consume the good or service, the less you will enjoy it? Will the Law of Diminishing Marginal Utility eventually apply to your chosen good or service?
You will be required to:
- Give a brief introduction and background of your chosen commodity. Include an explanation as to why you have chosen that particular good.
- Draw a table containing your total utility and marginal utility levels. You will then be required to explain the values that you have given to your chosen good or service, as you consume more and more units of it.
- From your values, sketch the total utility and marginal utility curves. You will then be required to explain the significance of the shapes.
- What conclusions can you make about the results?
Things to take note of:
- Your presentation should be prepared in Microsoft PowerPoint.
- Make your presentation as interesting as possible; if it is possible, you may even bring your selected good to class as part of your presentation.
- Please be realistic and honest about your utility values.
- The time limit for this assignment is 10 minutes. Do NOT exceed the time limit; marks will be taken away for every exceeded mark.
- The presentation date is on November 3rd. There are no extensions.
- This presentation is worth 15 marks for ECO 1021 Microeconomics.
- You will be given marks for the design and clarity of your PowerPoint slides, as well as your presentation and speaking skills in class.
- You do not need to dress formally, but please be presentable.