This preview shows page 1. Sign up to view the full content.
Unformatted text preview: lowest price that can be charged in a marketplace Utility 21:15 Utility= Satisfaction You measure utility by utils
Decisions made by most utils per dollar spent Diminishing Marginal Utility As you consume more and more of a good or service, the additional satisfaction you receive continues to go down
Sunk costs are those costs that are sunk, done and over with. There is nothing you can do about them. They are irrelevant to your current decisionmaking process
All fixed costs are sunk...
View Full Document