ECN 340 Lecture Notes - Lecture 4: Opportunity Cost, Vacuum Cleaner
26 Feb 2017
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How can we reduce accidents on the road - midterm questions. Everything would be much easier if everything was the same. Family is a producing unit (like a firm) Transforms inputs and produces the things wanted by the family. We look at marriage as a contract (social and economic importance) It is an open ended contract; not all eventual possibilities are spelled out. Marriage, or the cohabitation, is legally enforceable contract between two people. Prenup is used to fill up the contract as much as possible. 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 written contract soon leads to dissolution. What would you include in the contract. For example suing him (her) for not cutting the grass. Investment in a marriage makes it difficult to break-up. Divorce is a dissolution of the contract, just like a break up of a business.
