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Unformatted text preview: additional unit of an activity. For an extra bucket of popcorn at the movies, the marginal cost seems to be zero, considering that refills are free. And also, the popcorn tastes good, so the benefit goes up. However, if you look a bit closer, eating an extra bucket is unhealthy so therefore the cost goes up and the benefit goes down. A good example of a marginal utility increase is probably exercise. The marginal cost for an extra set of exercises is very low. For example, a person might be a little bit sore the next day. In addition, the marginal benefit is very high. An extra set of exercise is good for a person. Therefore, since an ideal situation is low marginal cost versus high marginal benefits, exercise is a perfect example. Week 1 Marginal Utility and Consumption 2 Week 1 Marginal Utility and Consumption 3...
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- Summer '10