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(Economics)

John Stuart Mill


Lionel Robbin

Alfred Marshall

Paul A. Samuelson

(Economics)

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(Scarcity)

10,000 ?


3

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1 ?
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I.

(Rational)
- (Benefit) /
(Utility)

-
(Profit)

II. -
(Trade off)
(Trade-off)
(There is no such thing as a
free lunch)
Having more of one good thing usually
means having less of another
another



vs.
vs.

III. (benefits)
(costs)
(
)

Benefit
f ((B)) Cost (C)
( )

- B < C
- B > C
B C
(Net Benefit)

III. (benefits)
(costs)
(
)
1
1
8
5 1

2
5
10
4

3
5

5 5
2

IV.
(Marginal
(M i l Thi
Thinking)
ki )

Marginall Benefit
f (MB)
( ) Cost (MC)
( )

Take
k no action
i unless
l its
i marginal
i l benefit
b fi iis
at least as great as its marginal cost

IV.

(Marginal Thinking)



(Utility)

(Marginal Utility)

(Law of
Diminishing Marginal Utility)

()

()

(Marginal
(Total Utility:
y MU))
Utility:
TU)

0
1

0
10

0
10

16

19

19

17

-2

(())


(Marginal
(Total (Marginal Cost: MC))
Utility:
Utility:
MU)
TU))

0
1

0
10

0
10

5
5

16

19

19

17

-2

MC

IV.
(Marginal
(M i l Thi
Thinking)
ki )
- ?
- ?
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- ?
-
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V.
(Opportunity cost)

(Best alternative forgone)



(Production Possibility Curve: PPC)


1. 2

2.
3.

4.


(Production Possibility Curve: PPC)
()

3,000

D
C

2,200
2,000

Production
possibilities
frontier

1,000

300

600 700

1,000

()


(Production Possibility Curve: PPC)
PPC ?


((Efficiency)
c e cy)
Scarcity - Choice Trade-offs Opportunity Cost

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VI. (incentives)
(price)

( i )




, ,

VII.

(Externalities)

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