ECN 340 Lecture Notes - Lecture 4: Opportunity Cost, Vacuum Cleaner
27 Jan 2017
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Document Summary
Family is a producing unit (like a firm) Transforms inputs and produces the things wanted by the family. We will look at the economic and social importance of the marriage contract, the difficultly of dissolving the producing unit (divorce), the implication of love, and what determines the roles in the marriage. Marriage, or the cohabitation, is legally enforceable contract between two people. It is an open ended contract; not all eventual possibilities are spelled out. Marriage is much like a constitution, or by laws that govern behaviour in a firm. Purpose of dating is to work out provisions of contract. Poorly put together contract soon leads to dissolution. For example suing him (her) for not cutting the grass. Divorce is a dissolution of the contract, just like a break-up of a business. Investment in a marriage makes it more difficult to break-up. Dissolution may be the result of not investing enough resources (time, energy, and emotional hassle)
