Saturday, January 20, 2007
12:05 PM...............................................................................
My prof says 知足常乐 => diminishing marginal utility sets in quicker?
I feel, it’s precisely of 知足常乐; diminishing marginal utility does not set in. Utility always increases proportionally with the level of consumption as you are contented.
Marginal utility = 1 and is constant :)
But I understand that I'm putting a cap on my level of consumption if I act in this manner. Nonetheless, it really doesn't matter as my utility is already maximised (at a given lvl of consumption). Yah?
Don't dare to reply. haha. He has a doctorate in econs after all.
I feel, it’s precisely of 知足常乐; diminishing marginal utility does not set in. Utility always increases proportionally with the level of consumption as you are contented.
Marginal utility = 1 and is constant :)
But I understand that I'm putting a cap on my level of consumption if I act in this manner. Nonetheless, it really doesn't matter as my utility is already maximised (at a given lvl of consumption). Yah?
Don't dare to reply. haha. He has a doctorate in econs after all.
