Microeconomics: Behavioral Economics

Behavioral Economics
Links decisions between businesses and individuals
Rational Choice
Increases likelihood we get what we want
shortcuts to certain tasks
Brain Problems
Myopia, time, self-control
Difficulty in understanding what to do today to achieve something in the future
Explicit Cost
“Accounting Costs,” obvious, cash and non-cash
Implicit Cost
“Opportunity Costs,” Not noticed
Crowding Out Effect
Keep adding people to the payroll and eventually the workplace becomes too crowded to be proficient
Minimum Efficiency Scale
What do I have to make to achieve the lowest cost of production

Get access to
knowledge base

MOney Back
No Hidden
Knowledge base
Become a Member