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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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