Saturday, January 30, 2010

To Eat Cafertia Food, or Not to Eat Cafeteria Food...That is the Marginal Question...

WHY do you choose to eat cafeteria food?---Economics has the answer!! Marginal Analysis--how you make a decision when you factor out/in the cost and benefits of each particular choice you have when presented with a scenario.  This cartoon shows how one may arrive at the decision to eat cafeteria food, usually not your first choice in dining. It presents it in terms of the desirablily of the choice (more gross to less gross, the Green Line) relative to the effort needed in obtaining that choice (the Blue Line).  You will see the optimal point in the cartoon is where the "grossness" is equal to the effort. On the left side of this point the grossness exceeds the effort to obtain that choice, so it is not desireable. To the right of the point the effort to obtain the choice exceeds the cost of the choice.  Is this an accurate portrayal of your decision making process in deciding where to eat? Be honest!!!  This can apply to so many other daily decisions you make in the course of a day.  Can you think of another scenario where you can use similar analysis???
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