This preview shows page 1. Sign up to view the full content.
Unformatted text preview: -we use the indifference curves to represent a countrys welfare, indifference curves are not allowed to cross-we cannot add up individual preferences to come up with societys preferences-country is most satisfied when the production possibilities frontier is at a tangent with the indifference curve ***Prove*** Change in A over Change in B = Price of B over Price of A...
View Full Document
This note was uploaded on 04/03/2008 for the course ECON 300 taught by Professor Gang during the Fall '06 term at Rutgers.
- Fall '06
- Opportunity Cost