Jan. 31 - - the change in output due to the change in input...

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Lecture 31/01/2008 09:33:00 Scarcity And Opportunity Costs     1. Production function diminishing marginal productivity 2. production possibilities frontier (PPF) opportunity costs 3. a note about growth and well-being Homework 1: part 1 due 2/8/08 Chp. 2 p.37 #3 Chp. 3 p.46 #6; p.49 #9 Chp. 4 p.62 #8; p.63 #9; p.65 #12 Chp. 5 p.81; #9 Scarcity     -Fundamental problem in economics -unlimited wants -limited supply Different world views which suggest that we should not unlimited wants (happy  w/o unlimited wants) Opportunity Cost     - the cost of choosing one thing and giving up another thing; the  best forgone alternative given up Profit     - (revenue minus expenses) Marginal Product of Labor
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Unformatted text preview: - the change in output due to the change in input MP L = Q L marginal=change diminishing marginal productivity - eventually additional increases in an input result in smaller and smaller increases in output (total output didnt go down, just didnt increase as much as before) -would have to be negative in order to decrease output -is the cause of the product possibility frontier Removing unfreedoms of nutrition and famine, lack of health care, illiteracy, lack of clean water, lack of economic security, lack of gender equality 31/01/2008 09:33:00 31/01/2008 09:33:00...
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This note was uploaded on 04/20/2008 for the course ECON 112 taught by Professor Minkler during the Fall '08 term at UConn.

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Jan. 31 - - the change in output due to the change in input...

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