Lecture 8 - 10/4/2009 Announcements Reading for Today text...

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10/4/2009 1 Announcements ± Reading for Today ± text Chapter 5 pp. 116-127 (112-120 5 th edition) ± Reading for Wednesday ± text Chapter 5 pp. 127-138 (121-131 5 th edition) Announcements ± EXAM DATES: Oct 12 (Monday) First Midterm 8-10 PM Nov 9 (Monday) Second Midterm 8-10 PM Dec 14 (Monday) Third Midterm 8-10 PM ± No cell-phones at exams. ± Calculators must be simple non-complex-non-graphing types of calculators. You may not share calculators. ± Come on time and bring your photo student ID. Exam Announcements ± Exam 1: Monday, October 12, 8-10pm in these rooms GSI Sections Room Kate Ambler 305, 308 1202 SEB Michael Gideon 310 1202 SEB Jiang Jiang 303, 304 1360 EH Dan Leeds 301, 311 1324 EH Eric Orhn 302, 309 1324 EH Exam Announcements ± Exam 1: Monday, October 12, 8-10pm ± Pooled Office Hours: Sunday October 11 1-4pm AH AUD B Optimization ± Marginal Analysis – optimal amount of x ± For a small change in x, Δ Payoff = ΜΒ − Μ C ± Suppose that the first unit of x has a large benefit ± Optimization Principle - maximize payoff ± Consider how much, say x, of an action to do ± Total Payoff(x) = Total Benefit(x) – Total Cost(x) MB > MC Do more of it! MB < MC Don’t do more of it! Do less! MB = MC Well-Being maximized compared with the cost ± Suppose MB decreases and MC increases as x increases ± Keeping increasing x until the MB = MC MC
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Lecture 8 - 10/4/2009 Announcements Reading for Today text...

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