Video 1 - Opportunity costs and tradeoffa
- OC: value of the next best alternative
- Tradeoffs The inherent constraints and trade-off between selecting one more of something against another
Margin
- Comparing the next decisions benefit to its cost
- We do not think about sunken costs when thinking about marginal, benefits, or cost of the opportunities that still exist
- What you paid for the jeans is irrelevant what he means by that is, you should mow you most focused on what demand tells us
- Ignore what you can’t change
Demand curve