Scribd
Upload
6 views1 page

ECON Chapter 1

Chapter 1 of the ECON document discusses how rational individuals and firms make decisions to maximize their objectives, such as profit and satisfaction. It emphasizes the importance of marginal changes and decision-making, where actions are taken only if the marginal benefit exceeds the marginal cost. This framework helps explain various economic phenomena.

Uploaded by

seeratnagpal2003
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
6 views1 page

ECON Chapter 1

Chapter 1 of the ECON document discusses how rational individuals and firms make decisions to maximize their objectives, such as profit and satisfaction. It emphasizes the importance of marginal changes and decision-making, where actions are taken only if the marginal benefit exceeds the marginal cost. This framework helps explain various economic phenomena.

Uploaded by

seeratnagpal2003
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

ECON chapter 1

Rational people systematically and purposefully do the best they can to achieve
their objectives, given the opportunities they have

 you will encounter firms that decide how many workers to hire and how
much of their product to manufacture and sell to maximize profits.
 You will also encounter individuals who decide how much time to spend
working and what goods and services to buy with the resulting income to
achieve the highest possible level of satisfaction.

marginal changes to describe small incremental adjustments to an existing plan


of action.

 Marginal decision making can help explain some otherwise puzzling


economic phenomena
 A rational decision maker takes an action if and only if the marginal benefit
of the action exceeds the marginal cost.

Key words
1.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy