ECO 2023 Lecture Notes - Lecture 29: Perfect Information, Opportunity Cost
Document Summary
The government forces people to contribute through taxes. Private markets can assist with the provision of public goods through Tying them to private goods. (ex): radio broadcasts and advertising. One unintended consequence of government public good provision is Crowding out (gov. taxes (increases), private benefactors (decrease)) When purchasing a good, consumers may not have the information necessary to make an The government can help provide information through regulation. The benefit derived from consuming an additional unit of the good. As the consumption of a product increases, the mu derived from additional consumption will eventually decrease. Max. price a consumer will be willing to pay for an additional unit of the product (the height of the. Consumers will maximize utility by ensuring that the last dollar spent on each commodity yields an. Equal degree of marginal utility. (): you calculate this utility by dividing the marginal utility of the good by its price.
