Week7_class - Principles of Microeconomics Econ 2005...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
05/07/09 Econ 2005 1 Principles of Microeconomics Econ 2005 Decision analysis: marginal analysis Chapter 7
Background image of page 1

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

View Full DocumentRight Arrow Icon
05/07/09 Econ 2005 2 Outline How economists model decision making by  individuals and firms Either-or decisions and marginal decisions Implicit  and  Explicit Costs  in decision  making Accounting Profit  versus  Economic Profit The  Principle of Marginal Analysis Sunk Cost:  bygones are bygones Present value  analysis: How to make  decisions in cases where time is a factor
Background image of page 2
05/07/09 Econ 2005 3 Two types of decisions Either-or decisions To be or not to be Must evaluate costs and benefits of the  whole project Marginal decisions Students: how hard to study How many hours to work in the field Compare cost and benefit of the last unit
Background image of page 3

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

View Full DocumentRight Arrow Icon
Econ 2005 4 Opportunity Cost and Decisions (ch 7) An  explicit cost
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.

Page1 / 17

Week7_class - Principles of Microeconomics Econ 2005...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online