ECON 2005 Lecture 2: Models
19 views1 pages
Document Summary
All in 1 thing or all in another. Deciding to increase or decrease a choice. Model - a formal statement of a theory, usually a mathematical statement of a presumes relationship between two or more variables. Variable - anything that changes / can be changed over time. Analyzing the additional or incremental costs or benefits arising from a choice or. Being able to produce a good or service at a lower cost than another producer. Being able to produce a good or service at a lower opportunity cost than another producer. Other producer would not want to give up producing what they are best at to make this thing, even if they are better at it than you.