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- subjective value
- i agree
- this bread is defintely worth $4
- economic calculation problem
- we should find out what the people think of it before setting a price
- this steak is going to be worth $25
- The Law of Marginal Utility
- i'm getting really tired chicken, i shouldn't have bought so much. I've been eating chicken for 5 days
- subjective value is what the people think the value of something should be.
- Opportunity cost
- do i want the healthy apple, or the unhealthy burger and fries, the burger and fries taste a lot better
- economic calculation problem when you set a price for something without knowing what the people think its worth.
- Cost/Benefit Analysis
- the more of something that you have, the less valuable its going to be.
- The ‘Invisible Hand’
- giving up 1 thing to do something, what is it going to cost to do something.
- an analysis of what is more beneficial that something else this picture represents the pros and cons between choices
- the picture represents a hand going over the economy setting prices, people pay what the amount the sellers prices it
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