GEOG 1001 Lecture : GEOG 1001 Lecture 15
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Example: suppose rational decision-maker charles faces a choice: he can either see. Beth patterson or daria & the hip drops in concert. Daria are each while tickets to see beth are . plus expected pleasure of seeing daria: how much/how many choices, all-you-can-eat buffet, relevant costs, sunk costs. Example: suppose meredith is considering purchasing cell-phone service from a company that charges per month. Everything else held constant, the marginal cost of the first minute of calls meredith will make is Example: suppose meredith did purchase cell-phone service from a company that charges per month. For that she is allowed 1000 minutes of free calls and then pays 25 cents per minute for any calls above 1000 minutes. Meredith has used 999 minutes this month so far. Everything else held constant, the marginal cost of the 1000th minute of calls meredith makes is
