ECON 200 Lecture Notes - Lecture 3: Sunk Costs, Tums, Comparative Advantage
23 Sep 2015
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Econ 200 - lecture 3: end of chapter 1 and beginning of chapter 2. Chapter 1: when the benefit of something is less than the cost, do not continue, sunk costs do not matter, question 1: a pizza parlor offers an all-you-can-eat lunch for . You pay at the door, and then the waiter brings you as many slices of pizza as you like. He had an assistant serve as the waiter for one group of tables. The waiter selected half the tables at random and gave everyone at those tables an. The remaining half the tables got no refund. He then kept careful count of the number of slices of pizza each diner ate. What difference do you predict in the amount eaten by the two groups: response: people who pay more money, will eat more pizza, question 2: you would like to play tennis on saturday morning.
