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Unformatted text preview: are inversely related. MB- MC= MNB= how long should u keep something open? Equilibrium= marginal net benefit= 0 and MB=MC Introduction of new technology for the production of capital goods would cause a movement from present place to highest on capital goods Surplus in market, price is above equilibrium Highest valued, next best alternative that must be sacrificed to obtain something or to satisfy a want is called opportunity cost. If consumers are frustrated, but producers are content, the current price must be below equilibrium Normal good- incersely related in price and demand Quantity exchanged???? Shortage- QD>QS at price below market cleaning price Surplus- QS> QD at a price above the market clearnign price QS>QD at p= 0, the good is nonscarce...
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This note was uploaded on 03/26/2008 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08