01.05 Economic Reasoning Activity Angela.rtf

01.05 Economic Reasoning Activity Angela.rtf - 01.05...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
01.05 Economic Reasoning Activity - Angela Chen 1 Marginal cost is the additional cost after producing one unit (like item). An example of this is when I was deciding whether to buy the large or small bag of chips. I bought the larger one, and the marginal cost was the extra amount I paid compared to if I had bought the smaller bag. Direct costs are obvious and out of the pocket costs. For example, I help produce yearbooks. The cost of the binding and the number of pages are direct costs because they are traceable to the place where each part was produced. Opportunity cost is the second best option, but when choosing the first option, an opportunity from the second is lost. For instance, I gave myself the options of choosing to take a nap or finish my math homework. I decided to take a nap, and thus my opportunity cost is the math homework, meaning that I lost the opportunity to finish math
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern