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10 Cards in this Set
- Front
- Back
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opportunity cost |
value of the best alternative |
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sunk cost |
the irrevocable and not refundable value you have to pay or have already paid |
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marginal cost |
additional cost for one more unit production |
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comparative advantage |
produce a good at a lower opportunity cost than partners |
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absolute advantages |
produce more in the same time or produce faster compared to others |
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production possibilities frontier |
graph of maximum production |
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how to draw individual ppf |
x-int - how much the person can finish for one task x y-int - how much the person can finish for the other task y slope: marginal cost of x & its always negative |
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points above ppf |
not attainable |
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points below ppf |
attainable but not efficient |
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a rational decision maker takes an action if |
marginal cost is less than marginal benefit |
