8 September 11, 2006

8 September 11, 2006 - Monday Microeconomics Malaysia...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Monday, September 11, 2006 Microeconomics Malaysia Philippines Rubber Rubber Ton/yr Ton/yr 30 10 20 Steel 40 Steel Ton/hr Ton/hr Opportunity Costs Malaysia Philippines 1 ton of Rubber 2/3 tons of steel 4 tons of steel 1 ton of steel 3/2 tons of rubber ¼ tons of rubber Malaysia has comparative advantage in rubber Philippines has a comparative advantage in steel Malaysia has got to get more than 2/3 tons of steel for each ton of rubber Philippines has got to get more than ¼ ton of rubber for each ton of steel 1 ton of steel = ½ ton rubber 1 ton of rubber = 2 tons of steel Malaysia Philippines Rubber Rubber Ton/yr Ton/yr 30 20 10 20 40 60 Steel 40 Steel Ton/hr Ton/hr 30(1 ton of steel/1/2 ton of rubber) = 60 40(1/2 ton of rubber/1 ton of steel) = 20
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Monday, September 11, 2006 (SEE TIGER WOODS EXAMPLE IN BOOK) MARGINAL ANALYSIS – Economic model of decision making or (applied common sense) MARGINAL – “one more” MARGINAL COST – the opportunity cost of obtaining a additional unit of an item
Image of page 2
Image of page 3
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