lecture 9 noes

lecture 9 noes - Are you obeying this law Rational behavior...

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How do consumers behave? LDMU = law of diminishing marginal utility – the value that a consumer places on additional units of a good or service will diminish as the total consumption increases – the consumption of all other goods and services remain constant.
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Unformatted text preview: Are you obeying this law Rational behavior or optimizing behavior means a maximizing utility After test, good time to read the fatal equilibrium Test on tues at 5 pm CLK (clark) 108 MUx/Px=MUy/Py=MUz/Pz...
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