Sunday, October 07, 2007

Diminishing marginal utility

Econ grad students including yours truly are forever complaining about the lack of time to do everything they want, especially all the readings that need to be done before class. This past week, I had no reason to complain about lack of time cause I had plenty of time to do all my readings and some. That however did not translate to me not complaining. My complaint this time, I had too much time. As the curious economist that I am, I know why I wasn't as successful with lots of time. The law of diminishing marginal utility. When the usual week (with classes and work) gives me about 40 hours of effective reading time, this past week I had more than double that, the result, I did not really enjoy all the free time. The economic explanation is that I had diminishing marginal utility in free time. Once I had enjoyed one full day of relaxation, I could not enjoy relaxation an more. In fact I was tired of relaxing and was itching to go back to my regular schedule of studying. Proves again that you can find economics in the most commonest everyday things.

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