ECON 103 Lecture 1: Econ 103 Ch 1 & 2 Notes
9 Sep 2015
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Studying tips: read book 2-3 times, take notes, study groups, do tutorial questions (before class, don"t study hours in a row, read 35-45 minutes then take break (~10 minutes) Microeconomics specific way of looking at behavior and decision-making. Assumptions = principles, something believed to be true. Principle of maximization everyone is driven by the desire to advance their interests and improve their well- being. People do their best, can still make mistakes !! Consumers: choose which goods and how much to buy, take prices and income as given, objective to maximize: Choose output, amounts of labor and capital. Take input prices and market structure as given. Marginal resulting from a small change; in this class the small change = 1 unit. Example: marginal cost of a cookie for consumer. At the optimal level of any activity (production, Marginal benefits = marginal cost (mb) = (mc)
