Wednesday, October 5, 2016

Donut Hell

Homer Simpson reeallly likes donuts. You might say he gets a LOT of utility from eating them. You might even say that his marginal utility is NOT diminishing, like the law of diminishing returns suggests. Here's what that would look like:
Other fun things in here include rule of law and property rights: Lisa suggests that Homer has the right to a fair trial, and Satan (Ned Flanders) says "This is always so much easier in Mexico," illustrating how institutions play a role in economic development.

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