ECO 212 Week 1 Individual Assignment How People Make Economic Decisions

ECO 212 Week 1 Individual Assignment How People Make Economic Decisions

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Marginal costs and benefits are important in economics. Determining marginal cost is important in deciding whether or not to adjust the rate of production, where marginal benefits is the benefit gained in changing the rate of production. Without realization producers and consumers everywhere thinks about marginal cost and benefits. We all make decisions that are in our best interest. In another words, when we buy or produce items we ask our selves simple questions. Would it cost cheaper to buy one more item? Or dose it cost more to produce one more item? And what would be the benefit of acquiring one more item? People make decisions depending on there reasoning. Decision making is also very important in economics; it can be simple yet complex. Each decision that is made, along comes with it risks and benefits. According to N Gregory Mankiw Principles of economics (2007), we face difficult decisions that require us to keep in mind four basic principles of economic decision making.
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This note was uploaded on 07/30/2011 for the course ECON 212 taught by Professor Steave during the Spring '10 term at University of Phoenix.

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ECO 212 Week 1 Individual Assignment How People Make Economic Decisions

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