Economics 1021A/B Lecture Notes - Lecture 1: Marginal Cost, Marginal Utility, Market Failure

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Bruce Hammond

Document Summary

Bus pass network/ job opportunities resources from nature (land, raw material like minerals and water) Marginal cost- the cost of an increase in an activity. Building a car, the extra marginal cost will be 6-7 million because you need the plan but the next cost would be just materialistic cost. Marginal benefit- the benefit that arises from an increase in n activity. Company would rather have your money and you"d rather have their laptop. Study of decisions of people and businesses. Ex. university profs should be paid more than nba players. What is can be proven true or false. Variables moving in same direction (positive relationship) Variables that move in opposite directions (negative relationship) The influence one variable has on the other can be determined by the slope . The boundary between what we can produce and what we can"t produce. Shows max combinations of outputs given resources and technology.