ECON1101 Miscellaneous Notes


Some costs matter more than others (e.g. in decision making marginal cost and opportunity cost matter, but average cost and sunk costs don’t).


Is cheap foreign labour a danger to high-wage economies?
No: we short term lost jobs, but we get to buy cheap products, produce high value products and create better jobs.

As the marginal cost increases so does the opportunity cost. So by the end creating 23409234 books might not benefit you, compared to making half that many CDS *and* books, with workers deploying their specialties.