ADMS 1010 Lecture Notes - Lecture 5: Swot Analysis, Ebay, Neoliberalism
29 Aug 2016
School
Department
Course
Professor
Document Summary
1776 adam smith authors the wealth of nations. ~ believes everyone acts for their best interest. ~ if everyone acts in their best interest, becomes a successful worker - everyone benefits. This great increase of the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing . ~ a natural force that guides free market capitalism thru competition for scarce resources. ~ participates maximize self-interest + interaction of market participates = exchanges of goods and services. ~ exchange enables people to be better off than when producing for themselves. On ebay, people bid the highest who want it the most. Marginal utility: not every dollar earned has the same attachment. Diminishing utility: 5th cake worth less than 1st cake. Behavioral assumptions: self-interested utility-maximizer, decisions are made only to benefit oneself (i. e. without consideration of others remember smith"s butcher and baker, utility = value; typically equated to money, rational:
