How do rational people go about deciding how much water they need?

Solutions

Expert Solution

When people actually get to think rationally, the amount of water they needed to get is on the basis of of the utility e maximum level in the net. They will keep on consuming more amount of water until the time when the utility minus the cost of getting the water is always positive for the marginal utility is positive when you subtract it with the marginal cost and therefore the break even will be at a point where the marginal utility will be equal to marginal cost and till the point they will consume water.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Why do we need carbohydrates and how much do you know about carbohydrates and how they...

Why do we need carbohydrates and how much do you know about carbohydrates and how they contribute to energy in your body.

Who is responsible for deciding how much reinsurance to purchase? How do these stakeholders affect the...

Who is responsible for deciding how much reinsurance to purchase? How do these stakeholders affect the purchase of reinsurance?

Explain why the neoclassical economists believe that the government does not need to do much about...

Explain why the neoclassical economists believe that the government does not need to do much about unemployment. Do yo agree or disagree? Explain.

What is a sample? How do yo go about selecting one?

How much money do you need to save each year to be a millionaire by the...

How much money do you need to save each year to be a millionaire by the time you are 65 if you can earn an interest rate of 8% and you start saving when you were born? Please use two decimals rounded up.

Do managers as well as people, in general, make "rational" decisions or do we really just...

Do managers as well as people, in general, make "rational" decisions or do we really just make "emotional" decisions that we "pretend" are "reational".

How do I go about showing in an IS - LM - IP diagram a decrease...

How do I go about showing in an IS - LM - IP diagram a decrease of interest rates but an increase in the exchange rate?

how do we go about determining the cost that goes on the Y axis for the...

how do we go about determining the cost that goes on the Y axis for the regression analysis in question 5c on chapter 2a of the Managerial Accounting 14th edition text? thanks.

How much money do winners go home with from the television quiz show Jeopardy? To determine...

How much money do winners go home with from the television quiz show Jeopardy? To determine an answer, a random sample of winners was drawn and the amount of money each won was recorded and listed below. Estimate with 92% confidence the mean winning's for all the show's players. 34575 33181 18030 24597 29791 22710 34255 26599 30359 17544 32948 17259 20302 23942 28048 Upper confidence limit = Lower confidence limit =

How much money do winners go home with from the television quiz show Jeopardy? To determine...

How much money do winners go home with from the television quiz show Jeopardy? To determine an answer, a random sample of winners was drawn and the amount of money each won was recorded and listed below. Estimate with 96% confidence the mean winning's for all the show's players. 13786 ,26730 ,25749 ,25857, 23425, 11656, 19845, 24269, 14632, 24309, 12774,17929, 16233, 21365, 25571 UCL = LCL=

Subjects