ECO101H1 Lecture Notes - Lecture 3: Sunk Costs, Autarky, Absolute Advantage

20 views3 pages
5 Nov 2015
School
Department
Course
Professor
elizabethkandelaki and 40134 others unlocked
ECO101H1 Full Course Notes
98
ECO101H1 Full Course Notes
Verified Note
98 documents

Document Summary

If you could save on a textbook, would you travel downtown to buy it. If you could save on a computer, would you travel downtown to buy it. If mc [opportunity cost] < , buy both downtown. If mc [opportunity cost] > , buy both at u of t. In fact, some would travel downtown to save 30 on the book, but not to save 30 on the computer this is not rational. Answer: by the accuracy of the predictions of economic analysis. E. g. : many restaurants, with few customers, stay open for lunch, number of motor-vehicle accidents does go up after introduction of mandatary seatbelt laws, during a recession, university enrollment rises (as opportunity cost of attending university falls) Production possibilities frontier (ppf: scarcity (attainable vs. not attainable) not attainable attainable , trade-offs (choices, decisions) products a b, opportunity cost. Application: used to illustrate the benefits of trade, between countries and between individuals.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents

Related Questions