ECON 1202 Midterm: Exam 1 - Study Guide
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ECON 1202 Full Course Notes
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Chapter 2: the economic problem: marginal cost/marginal benefit, ppf, the boundary between those combinations of goods and services that can be produced and those that cannot, how we use mc and opportunity cost in curve, each point on ppf has an opportunity cost, mc is the opportunity cost of producing one more unit of a good, know why ppf is shaped how it is, shape. Productive efficiency: to be efficient in production, you must produce at a point on the ppf: below ppf (cid:224) inefficient, above ppf (cid:224) impossible w/o shifting the ppf (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) Substitutes: another good you can produce using the same inputs: expected future prices (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0, number of suppliers, technology, state of nature, change in d, price of related goods.
