ECO 100 Lecture Notes - Marginalism, Scientific Method, Disposable And Discretionary Income
Document Summary
Economics is: a social science, it"s dictated by the people. Which are the scares of productive resources which are distributed among competing ends. Therefore, the competing products that are being distributed: economic wants exceed society"s productive capacity. Envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs. It is the benefits of manufacturing activity to the expenses to determine if the activity is profitable. The comparison of marginal benefits (mb, mc) and marginal costs, usually for decision-making. The c and y variable move in the same direction, increases together or decreases together. Total revenue is less than cost their business is losing money. If total revenue is greater than total cost their gaining money. Marginal cost - the cost added by producing one additional unit of a product or service. (money you"re putting in) Marginal benefit - the additional benefit arising from a unit increase in a particular activity. (money your making)
