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Summary Microeconomics: Canadian Edition 3rd Edition

- Paul Krugman
ISBN-13 9781319120061
327 Flashcards & Notes
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A snapshot of the summary - Microeconomics: Canadian Edition 3rd Edition Author: Paul Krugman ISBN: 9781319120061

  • 9 decision making by individuals and firms

  • Why does a good decision making depend on accurately defining costs and benefits?
    Lets find out
  • What is the difference between Explicit and implicit cost?
    Lets find out
  • What is the difference  between accounting profit and economics profit and which profit is the correct basis for decision making , and why?
    Lets find out
  • Ehat are the three types of economic decisions?
    Lets find out
  • Why doe people behave  in irrational yet predictable ways sometimes?
    Lets find out
  • Why are decisions involving time different and how they should be made
    Lets find out
    (chapter index)
  • 9.1 Costs, Benefits , and Profits

  • Why do economists use Explicit and Implicit costs? What relationship do they use it to compare with? That do they mean by those relationships
    • They use these costs  to compare the relationship between opportunity cost and the monetary outlays
    • Meaning the money they forgo, and the time they spend, and the future income that they would gain as a result of decisions.
  • Why do we need to know the cost and benefit concept , what do we asses with that concept
    In order to asses the cost and benefit and make either or decisions
  • 9.1.1 explicit versus implicit costs

  • Why is Explicit cost the most obvious cost?
    Explicit cost is the monetary cost that a person accrues by making a decision
  • What is significant about impilicit costs?
    It is the value or opportunity cost in (dollar terms) of the benefit that are forgone.
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