ECON 102 Lecture Notes - Lecture 3: Sunk Costs, Marginal Utility, Opportunity Cost
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ECON 102 Full Course Notes
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How many slices of pizza should you eat at an all you can eat restaurant. Eat pizza until marginal benefits reach 0. Should you change your major after investing 3 years and money into your current major. Cut your losses by restarting now instead of in another year. Look at costs and benefits on now and not the past. Lost forever but would be spent anyways. Airplane has an extra seat but base costs remains the same anyways. Will not change regardless of decision makers decision. People usually exploit opportunities to make themselves better off they will respond to. Parking in the wrong place penalty; parking in the right place no penalty. Acting in self interest means making decisions to further ones selfish goals. Donate money to help a cause makes you look better help people. Actions that seem selfless are actually selfish.
