ECON 2000 Chapter : Econ 2000
Document Summary
Marginal value- give up something it shows ;vice versa: attempt to make them equal. Marginal thinking: wedding situation: had the faculty was open but had it for 5 hours got rushed out at 5, rushed out at 5 cause limo service charged per minute later. Optimal decisions are made at the margin: marginal analysis : analysis. The cost connected to consuming an additional unit of a good or undertaking one more unit of activity. The benefits connected to consuming and additional unit of a good or undertaking one more unit of activity. Decisions at the margin: decisions making characterized by weighing the additional (marginal) benefits of a change against the additional (marginal) costs of a change with respect to current conditions. Economic reasoning is making decisions by comparing marginal costs and marginal benefits. Marginal cost- the additional cost over and above costs already incurred. Mb=mc marginal benefit= marginal costs also known as efficiency.
