8 September 11, 2006

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

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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
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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
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This note was uploaded on 03/20/2008 for the course EC 201 taught by Professor Xasdf during the Fall '08 term at N.C. State.

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

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