lecture4 - benefits and costs - Topic 3 Balancing benefits...

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Topic 3: Balancing benefits and costs USC Marshall
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Balancing benefits and costs Principles of optimization – How to maximize or minimize a function How optimization relates to individual choice – When a decision problem is framed right, it almost always comes down to maximizing net benefit (total benefit minus total cost) The concepts of – Marginal benefit and marginal cost USC Marshall – Opportunity cost
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