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Unformatted text preview: want those things. The reason that garbage is not scarce is that people do not want garbage. Rational choice means people making calculated, self-interested choices after weighing the costs and benefits of those choices. A rational agent chooses the action that is most self-satisfying. All choices come with a cost. The real cost of choosing something is not the money you pay to get it. The real cost is the value of the next-best alternative that you gave up to make the choice you did. This is called the opportunity cost ....
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This note was uploaded on 06/18/2011 for the course ECON 101 taught by Professor Vicek during the Spring '11 term at Parkland.
- Spring '11
- Opportunity Cost