![]() ![]() Instead of just saying marginal benefit, I'm gonna call this the And so, let me relabel this a little bit. But now, I'm going to introduce a new idea because everything we talked about here, the marginal benefit and the cost, this was just the marginal private benefit and the marginal private cost. And we have, and this is all review, you would have your equilibrium quantity that the market would produceĪnd the equilibrium price. And so, we have our, this, we could also view asĪ marginal benefit curve. Little bit less benefit, and so they have a littleīit less willingness to pay, which makes this downward sloping. And then every incremental unit, people might just get a That first unit of soda, someone's going to getĪ huge benefit for it, and so they have a high So, this is our demand curve, which we could also view asĪ marginal benefit curve. ![]() But then, as price gets lower, a lot more people are gonna want the soda. And then, on the demand side, we have our classic downward-sloping curve at a high price. So, you could also view thisĪs a marginal cost curve. You have to hire and train more people and get realĮstate for your factories. Quite easy to produce, but then it gets a littleīit more and more expensive or costly to produce as And we could also view thatĪs a marginal cost curve. Not a lotta people wanna produce soda, but as price goes higher, more and more people Upward-sloping supply curve at a low price. And so, we're going toĭraw our traditional axes, so that is price, and that is quantity. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2022
Categories |