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microbook_3e-page6 - teaching flippings burger 2 1 Ill give...

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Opportunity Cost x We all face choices. Resources are “scarce.” x We can’t spend more time or money than we have, so we have to give up one opportunity to take advantage of another. x If I have a choice between earning $1000 per month by teaching this course OR earning $500 per month by working at McDonald’s, then: o It takes me one month to produce $1000 worth of teaching. o It takes me one month to produce $500 worth of burger flipping. x Q: What’s my opportunity cost of teaching ? x A: Half a burger flipping per unit of teaching. flipping burger of $500 per month one teaching of $1000 per month one flipping burger of $500 month one teaching of $1000 month one teaching of $1000 flipping burger of $500
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Unformatted text preview: teaching flippings burger 2 1 Ill give a much, much better example in the next lecture. Point plotting (X,Y): x the first point in a pair lies on the X axis (horizontal axis) x the second point in a pair lies on the Y axis (vertical axis) Lets graph the following equation in red (square points) : y = 5x + 20 Connect points: (0,20) , (1,15) , (2,10) , (3,5) & (4,0) y-intercept: x the value of y, when x = 0 x here its 20 , because: 20 = (5*0 ) + 20 slope: (well get back to that) More examples: y = 4x + 5 (blue, round points) y = 2x + 15 (green, triangle points) Math tool of econ. analysis Page 6...
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