ECON 102 Lecture Notes - Lecture 1: Fixed Cost, Marginalism, Opportunity Cost
Document Summary
Four concepts of econ: trade offs: if you do one you can"t do the other; don"t tell you what to do just. Chapter 1 give you a set of choices. Sometimes trade offs exist that you don"t even know about (cid:3455) Getting the most out of something fairness with the least effort. Economics: study of how to efficiently distribute scarce resources. Different from fixed cost because regardless of if you have 1 employee or 12, rent is the same additional benefit gained by increasing by 1 unit additional cost gained by increasing by 1 unit. Marginal benefit = marginal cost stop, do it but no lower: incentives: reason for you to do something. *enforce property rights and upholds rule of law. Fundamental economist adam smith act in self interest and the other person is better off is the most efficient way: market: a place where buyers and sellers meet.
