ACCT 2000 Chapter : 130e710a7d9346bd067bc3c102a635f4
Document Summary
Remus has to decide which side of the lake to fish on. His expected catch: scarcity: two elements (wants and the means to fulfilling those wants) Examples of economic reasoning: a question: is it rational (in the economic sense) to ever stop doing something that is profitable, either/ or choices, charles and the concert ticket, how much/many choices, stasia and the smorgasbord. rational for todd: seeing beth, seeing todd, relevant costs and benefits, costs - ticket + expected pleasure of seeing beth. If the benefits are at least as great as the costs, then yes. If the cost are at least as great as the benefits, then no: benefits expectant pleasure, benefits expected pleasure of seeing her + saving, costs expected pleasure of seeing todd. If they"re equal, then you are indifferent, so either choice you make is: sunk costs if you"ve already bought the non-refundable ticket you"ve already spent the .
