Randomly Divide the Class into Two Groups

question 7

Essay

Randomly divide the class into two groups.Give one group the task of defending Warren Buffet's position on valuing put options.Have the other group disagree with Buffet's position.Moderate a discussion of the two,listing the pros and cons on the board.

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Definitions:

Marginal Benefits

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Marginal Costs

A rephrased definition: The cost added by producing one additional unit of a product or service, reflecting the change in total cost that arises from an increase in production.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.

Marginal Benefit

The extra enjoyment or benefit derived from acquiring or generating another unit of a product or service.