POL 101W Lecture 3: Econ 103 notes
7 Dec 2016
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Books- d. allens seven ideas for thinking 9th edition. Microeconomics: it is a social science- studies behaviour, more speci cally decision making. Basic principle- assumption: statement that is taken to be correct. Maximization- each individual desires to improve their own well-being (doesn"t mean making the right decision) = total value - total cost utility, personal preference = measure of. Objective: maximize pro ts = revenue-cost matter of prices, consumers take, given. At high quantities marginal bene t is low. Is a situation where no one wants to change their behaviour. Everyone is doing their best (which means achieving their best outcomes) given the circumstances. Indifference- a person is indifferent when two options give them the same level of satisfaction notice that for all units mc => the person gains. But only for the last unit(correctly: tiniest fraction of the last unit)
