Microeconomics Chapter 5

Microeconomics Chapter 5 - Microeconomics Chapter 5 2:46:00...

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Microeconomics: Chapter 5 08/10/2007 13:46:00 The law of Demand: People do less of what they want to do as the cost of doing it rises.  The cost of an activity, good, or service involves not just monetary costs, but  non-monetary costs as well. o Time, effort, etc. Utility represents the satisfaction that people derive from consumption activities. The rational utility maximizer: Utility increases with consumption Beyond some point, the additional utility from extra consumption DECLINES. 
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