ECON 2030 Chapter : Chapter 1 And 2
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Costs are the same, will eat before or after, it doesn"t matter. Benefit: expected pleasure of movie, save . 75 because not buying ticket for. Costs: expected pleasure of the quiet man, . 75. A cost that"s not recoverable: relevant costs: expected pleasure. Which one do you think you"ll like more: sunk costs: the ticket price. You"ll pay it both ways, so it"s not recoverable. Cost: nothing, because you already paid to get in. All of the future bites are weighed the same. Consider the expected pleasure of each subsequent bite. Yes: delta and the mayor: delta cuts one flight between city and. Mayor unhappy, says business depends on having connections to atlanta. Delta"s perspective: doesn"t care about business in the city. Flight is turning a profit, but cost is using the equipment on another more profitable route: positive vs. normative economics (what is vs. what ought to be, relevant costs, positive: descriptive statements.