Question

Question 1
Suppose that a large number of couples have children.

1. Why might having young children make parents more willing to work? Express your answer in terms of the marginal utility of consumption.

2. Why might having young children make parents less willing to work? Express your answer in terms of the marginal utility of leisure.

Answer 1

Basically , the marginal utility is tool to quantify the satisfaction which a consumer get by consuming good or service .Positive marginal utility occurs when the additional item consumption increase the total utility whilke the negative marginal utility occurs when the additional item cost consumption decrease the total utility .Now the case here is about the young children , when the young children do not need the time of their parents or do not want them to be preoccupied by parent , the parents are more willing to work and this increase the marginal utility which satisfied them untill it start to decline as they get what they want . Then comes the diminishing factore in which the marginal utility decline and here when the young children want thier parent to ahve leasure , the utility (marginal) decreases and parent are not willing to work .This is how this case can be explained in terms of marginal utlity .

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