BIOL 1209 Chapter : 20140425 122944
Document Summary
Marginal analysis: analysis that involves comparing marginal benefits and marginal costs. Utility the satisfaction one receives from a good. Bad anything from which individuals receive disutility or dissatisfaction. Good anything from which individuals receive utility or satisfaction. Disutility the dissatisfaction one receives from a bad. If the marginal benefits of doing something exceed the marginal costs, do it. If the marginal costs of doing something exceed the marginal benefits, don"t do it. Opportunity costs the most highly valued opportunity or alternative forfeited when a choice is made. Items you could have purchased with the money spent for tuition and books. Loss of the income from a full-time job. Making decisions requires trading off one goal against another. Incentives are the costs and benefits of making specific decisions: changing incentives alters people"s behavior. Incentives operate on all levels personal, familial, industry, and societal level. Marginal changes in costs or benefits motivate people to respond.
