economics question?

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Imagine that you cell TVs. Explain how the principle of diminishing personal value affects your ability to sell your customers a second or third TVs set.

2007-03-18 02:43:16 · 1 answers · asked by henry f 2 in Social Science ➔ Economics

1 answers

I'm sure that you know the answer to this already!

What is the value to you of getting your first TV? Where would you put that TV and how much would you use it?

Now, think about the second TV. Where you would you put it, and how much would you use it relative to the first TV?

Is the marginal value of the second TV higher or lower than the marginal value of the first TV?

2007-03-18 03:06:47 · answer #1 · answered by Allan 6 · 1⤊ 0⤋