Decision making by individuals and firms
5 important questions on Decision making by individuals and firms
What does the opportunity cost include? What is its formula, and what other things does it include
- It states that the cost of a decision isn't just the monetary value to obtain that decision, but also the time and resources used up to fulfill that decision.
- The opportunity cost is the Explicit cost plus the implicit cost.
- should include any of my own resources for the activity.
What is the cost that people should ignore when making decisions? Why should they be ignored?
- Sunk costs are the costs that people should ignore when making decisions
- this is because the sunk costs has already occurred as the name suggests they have already sunk, and cannot be recovered.
- once something cant be recovered it is irrelevant in making decisions about what to do in the future .
When to consider sunk costs while making decisions about the future? Can they change you future decisions
- Only consider sunk costs if you have not already made them meaning if those haven't occurred then it is okay to consider them.
- they might make you change your decision about the future.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
How is it rational to make irrational decisions, that leave people worse off?
What are the three reasons economists still use models based on rational behavior when people are at times irrational?
- This is because models for rational behavior still provide predictions about how people behave in MOST markets
- sometimes the market forces the irrational to become rational, by disciplining their mistakes (irrationality) in the for of significant losses, rationality will win over time, and they will become rational.
- economists depend on the assumption of rationality for the simple but fundamental reason that it makes modelling so much simpler by generalizing harder and messier models.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Topics that are related to Decision making by individuals and firms
-
Decision making by individuals and firms - Costs, Benefits , and Profits - Accounting profit versus Economic profit
-
Decision making by individuals and firms - Costs, Benefits , and Profits - Making either or decisions
-
Decision making by individuals and firms - Making how much decisions: the role of Marginal Analysis
-
Decision making by individuals and firms - Behavioural Economics - Rational but human too
-
Decision making by individuals and firms - Behavioural Economics - Irrational : an economist's view
-
Decision making by individuals and firms - how to make decisions involving Time: Understanding present value
