ECON-E 201 Lecture Notes - Lecture 11: Ceteris Paribus, Marginal Utility, Marginal Cost
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ECON-E 201 Full Course Notes
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Econ-e201 lecture 11 notes- review for exam 1. Must put last name, first name in scantron as listed in canvas. Recommended: review quizzes, review myeconlab, do practice exam. Microeconomics- business, individual choices, specific item prices. Meeting point of 2 curves is equilibrium. Modeling- assumption of ceteris paribus; simplified versions of things meant to predict changes. Positive economics- factually true/false, testable: module 2. Gives 2 goods being produced shown with many possible combinations. Assume all resources being used most efficiently, technology unchanged, time constant. Does not deal with benefits (those are for consuming) Marginal benefit- has to do with preferences/wants. Assume curve slopes downward- law of diminishing marginal benefit (higher price means we want less additional ones) Allocative efficiency- where marginal benefit = marginal cost (where their curves intersect) Comparative advantage- can have in only 1 good"s production. Absolute advantage- can have in 0, 1, or 2 goods. Specialization- based on who has which advantage; leads to more efficient output.
