Final answer:
John's decision-making process involves comparing marginal utility to maximize satisfaction from the purchase of goods. José and Marvin face decisions based on utility and imperfect information, respectively, with their choices impacted by factors like the benefit gained from additional units of a good and the risks of unknown product defects.
Step-by-step explanation:
The question that John must answer involves decision making by comparing marginal utility.
In economics, marginal utility refers to the additional satisfaction or benefit that a consumer gains from consuming an additional unit of a good or service.
When making decisions, consumers like José might try to maximize their total utility by comparing the marginal utility of different goods.
For instance, José could assign a value in 'utils' to the satisfaction gained from purchasing T-shirts and movies, and determine how many of each to buy to maximize his total utility given his budget constraint.
Similarly, Marvin faces a decision with imperfect information. If he lived in a world with perfect information, he could simply choose the cheaper car.
However, the real-world scenario includes the likelihood that sellers may hide information about a car's defects, as disclosing such problems could decrease the selling price.
This information asymmetry requires Marvin to consider the risks associated with purchasing a car with potential unknown problems.