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Unformatted text preview: At what price should the goods be sold? How People Mae Decisions-People face trade-offs. How do you know what something is worth unless you know what you have to give up to get it. -The cost of something is what you give up to get it. .time-Rational people think in margins. Principle 1. People face Trade-offs.-To get one thing, we usually have to give up another thing. MONEY IS NOT A TRADE-OFF, the other things we could have bought with that money-guns vs. butter-food vs. clothing-leisure time vs. work-efficiency vs. equity...
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- Spring '08