ECON 1000 Lecture Notes - Lecture 2: Marginal Utility, Opportunity Cost, Comparative Advantage

67 views2 pages
22 Sep 2016
Department
Course
Professor
castroariane563 and 39059 others unlocked
ECON 1000 Full Course Notes
10
ECON 1000 Full Course Notes
Verified Note
10 documents

Document Summary

Boundary between those combinations of goods and services that can be produced. We focus on 2 goods at a time. Everything else remains constant - ceteris parabus. Everything on the curve is maximizing resources, no idle resources. Direct relationship with opportunity cost and slope. = decrease in the quantity produced of one good / increase in the quantity produced of one good. Opportunity cost of producing one more of that unit. Benefit received from consuming one more unit of it. More we have of a good = we are less willing to pay for another unit of it. When marginal cots and marginal benefit is equal. Only one point like this on the graph. Opportunity cost of economic growth is less current consumption. If that person is more productive than others. In an activity if that person can perform the activity at a lower opportunity cost than everyone else.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions