Economics Assignment

Economics Assignment - Economics Assignment Chapter no 2...

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Economics Assignment Chapter no 2 Questions Q1 . Would you ever purchase something that you valued less than its cost (on the last unit purchased)? What if you valued it more than its cost? Ans . Being a rational person I will follow cost benefit analysis, as a good which I opted to buy have less value than its cost so I will purchase it as its marginal benefit is more than its marginal cost . While if its cost is more than my value assumed so I will not buy such product as here the marginal cost is more than marginal benefit. Q2 .How do you decide when to stop doing something you like? For example, if you like to run, why don’t you do it all of the time? Ans . When ever the marginal cost of any activity exceeds its marginal benefit I would stop doing that activity i.e one cant run for all time as one have to do some other activities as well, and if we carry on doing one activity for more time its marginal cost would exceed its marginal benefit and that activity would not be feasible to do.
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This note was uploaded on 03/07/2012 for the course FINANCE 280 taught by Professor Saira during the Spring '12 term at IMSciences.

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Economics Assignment - Economics Assignment Chapter no 2...

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