economic-surplus.pptVIP

English PPT ShowEconomy JenkinGan@ Economic Surplus(剩余) Benefit of an action minus(减) its costs Opportunity Cost The value of what must be foregone(放弃) in order to undertake an activity Consider explicit(明显的) and implicit costs(隐成本) Examples: Give up an hour of babysitting to go to the movies Give up watching TV to walk to town Caution(注意): NOT the combined value of all possible activities Opportunity cost considers only your best alternative Question:You have $10,000 which you could invest the following ways: In stocks which would return $1,000;in a fixed deposit that would return $50