ACTG 2010 Lecture Notes - Lecture 7: Pareto Efficiency, Marginal Revenue, Marginal Cost
12 Jul 2016
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Document Summary
Our intuitive gauge for decisions and actions. Differ between people because the goals, norms, beliefs and values upon which they depend also differ. Personal goals: our expectations of outcomes (including material possessions, lifestyle preferences, personal goods and social aims) Personal norms: expectations of behavior; way we expect to act and the ways in which we expect others to act in given situations: different from moral standards since it doesn"t associate with right/ wrong. Personal values: the ways we judge the relative importance of what we want to have (priorities among goals, norms, and beliefs) *4 standards of moral behaviour are affected from cultural and religious tradition as well as the economic and social situation of the person. Consist of the subjective standards of moral behaviour, religious/cultural traditions and economic/social situations. Economic theory: is more a normative theory of society than a descriptive theory of the firm. Central focus: efficient utilization of resources to satisfy consumer wants and needs.
