EC120 Study Guide - Midterm Guide: Sunk Costs, Invisible Hand, Opportunity Cost

50 views2 pages
18 Oct 2015
School
Department
Course
Professor
carminegrasshopper545 and 38337 others unlocked
EC120 Full Course Notes
30
EC120 Full Course Notes
Verified Note
30 documents

Document Summary

Every good is made of land, labor and capital. Opportunity cost: include explicit costs (out of pocket expense) and implicit cost ( Do not include sunk cost (unrecoverable cost) The law of the demising and return. If both sides change value, the opportunity cost stays the same. Chapter 3 interdependence and the gains from trade. Comparative advantage: the ability to produce a good at a lower opportunity cost than another producer. Never produce both goods when you trade. Draw table or diagram when you do the exam. What is the relative price??? ( it"s always between the two original numbers) Put what you look for on the bottom a/b. It"s a flow not a stock of goods. A market is the collection of buyers and sellers of a good or service. Competitive markets require a large quantity of sellers and buyers. The lower of the price the more of a good i will buy.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers

Related Documents