ECON 1000 Study Guide - Comprehensive Final Guide: Pareto Efficiency, Price Discrimination, Price Ceiling
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ECON 1000 Full Course Notes
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Ch a p te r 8 : utility a n d de m a n d. Ch a p te r 9 : p o s s ib ilitie s , p re fe re n c e s , a n d ch o ic e s. Rm : is an institution that hires factors of production and organizes those factors to produce and sell goods and services. The rm"s goal : to maximize pro t. Accounting pro t : depreciation : the fall in value of a rm"s capital. Opportunity cost of production is the value of the best alternative use of resources that a rm uses in production. The value alternatives forgone: resources bought in the market. The amount spent on resources bought from the market is an opportunity cost of production because the rm could have bought different resources to produce some other good or service: resources owned by the rm.