ECON 1050 Chapter 1: Chapter 1 and 2.docx

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The sum of all things lost (cid:224) choosing one thing over another: opportunity cost and marginal cost are the same, opportunity cost can be anything and marginal cost is usually quoted in 8643 (e. g. per ice cream scoop, marginal cost is the sacrifice you make to get one more of another, the marginal benefit from a good or service is the benefit received from consuming one more unit of it, how much choices made at the margin, marginal benefit, marginal cost. What you lose to gain something (e. g. the marginal cost of buying ice cream would be that you could"ve put that money in the bank to gain interest: choices respond to incentives, we can predict the self interested choices that ppl make by the incentives they face, ppl undertake activities for which marginal benefit > marginal cost; reject vvsa, when choices are not in our in the social interest, it"s bc of incentives we face.

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