Explain how a voluntary exchange result

Reference no: EM1331355

Does my utility increase if I pay less?

You attend an auction and in your mind agree to pay $100 for an item, but you are able to purchase at $50.

1. Discuss the comparison of the utility of the $100 versus the utility of the good and how a voluntary exchange results in a win/win situation to both parties.

2. Has the utility of the item increased because of the lower price and why?

3. As a result of the lower price, has your total utility increased and why?

Reference no: EM1331355

Questions Cloud

Prepare a project plan that covers all project groups : Prepare a project plan that covers all project groups and knowledge areas and Prepare project plans that integrate project procurement and contracting activities across project groups

More hours or fewer when offered a higher hourly salary : you select to work more hours or fewer when offered a higher hourly salary.

Creation of an evaluation system : Explain how you would proceed with the creation of an evaluation system and List the types of intervention you would design and ask the company to implement to address this issue.

Write down an algorithm that returns the smallest value : Write down an algorithm that outputs the smallest and second smallest values in array.

Explain how a voluntary exchange result : Explain how a voluntary exchange results in a win/win situation to both parties.

Indicators of strategic hrm effectiveness : Indicators of strategic HRM effectiveness - Find an article through ProQuest that discusses the proposition that HRM adds value to the firm.

A strong behaviorist approach to learning focuses : A strong behaviorist approach to learning focuses on discrete tasks that are built up until they become a complex behavior.

Resource challenges and independent contractors : Resource Challenges and Independent Contractors - What are the negatives and positives when using independent contractors for projects

If the customer is rational explain how economic decisions : If the customer is rational explain how can use affect their economic decisions

User Account

All Pages