Marginal analysis and decision-making:

Concept: The Fundamental Assumption of Economics

All social phenomena emerge from the actions and interactions of individuals who are choosing in response to expected marginal benefits and expected marginal costs to themselves.

Definition: Marginal is additional or incremental (amount of increase) or decremental (amount of decrease).

Should I do (choose) activity x?

MC(x) = the additional costs of doing x

MB(x) = the additional benefits of doing x

Rule:

If Expected MB(x) > Expected MC(x), do x; otherwise don't.

Application:

Would an employer ever hire anyone if the expected additional cost of his or her employment were greater than the expected marginal/additional benefit? Of course not, to do so would be irrational.

Assumptions:

In economics, we assume rationality. No one would intentionally harm themselves.

Do businesses have the ability to measure costs? Marginal costs?

ALGEBRA AND MUTIVARIATE CALCULUS FOR ENGINEERS Spring 2020 Let Rix Sys , be the closed region having boundary C with counter-clockwise orientation. F = [x cosh3y, x sinh3y]. Using Green's theorem, evaluate the line integral OF . or and answer the following questions. 1. Choose the equation that relates the line integral over C to the double integral over the region R In the Green's theorem: B. OF , dx + Fady = JJ OF2 OF1 R ay Jdxdy B A OF , dx + Fady = JJ OF, OF 2 ay dxdy c. OF2ax + F,dy = JI OF 1 OF 2 R ay Jaxdy OF2 3. Choose the value of OF1 Jaxdy ax ay R H. - cosh- 1 sinh- 1 4 16 4 2 1 cosh - sinn 1 18 3 3 J. - cosh- 16 -sinn- 4 K cosh- -sinn- X e PS W 9A sample of size n is taken from a population with an unknown distribution, with mean // and standard deviation O. Which of the following statements about the sample mean distribution is true? Select one: a. without Using the Central Limit Theorem, X approximately followsX - N H,- 02 n b. Using the Central Limit Theorem, Xexactly followsX - NCH, 02 n C. without Using the Central Limit Theorem, Xexactly followsX - Nu,- 02 n d. Using the Central Limit Theorem, X approximately followsX - Nu,- n