ECON 201 Lecture 2: Econ Class 3 Notes

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Have an abundance of resources- land, labor, and capital. But not unlimited, every decision has a trade-off no such thing as a free lunch. You have an incentive to come to class to get an a , get good grades, get a good job, get a good job, make lots of money, make lots of money. A sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs (past costs) are excluded from future business decisions because the cost will be the same regardless of the outcome of a decision. Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. People and companies use marginal analysis as a decision- making tool to help them maximize their potential profits. *the chevelle is worth more because more people want it. The jeep is rare, few have it, but few want it the price is less.

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