Marginal Utility and Marginal Cost Presentation.pptx

This PowerPoint details the concepts of Marginal Utility (Cost vs. Benefit) providing real life examples for High School students to better understand.

1. Fun Facts South Koreans are required by law to use Internet Explorer for banking and shopping Contrary to popular belief, the Great Pyramids are not in the middle of the desert. They are right next to the city of Giza There’s a café opening in Japan where you’ll be able to play with hedgehogs Ramen is now the most traded item in prison, surpassing cigarettes

2. 6/30/2022 New York is named world's wealthiest city, home to 345,600 millionaires, and 59 billionaires, with Tokyo and San Francisco making up the top three If/When you are finished: .....it will be the end of class 6/30 EPF Agenda: 1) Welcome Back! 2) Unit 1 Review 3) Unit 1 Exam 4) Costco Video + Notes 5) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 6/ 30 Social Media Day

3. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

4. 9/28/2019 Elon Musk unveils SpaceX spacecraft Starship, designed to travel to Mars and the solar system and land back on earth If/When you are finished: .....it will be the end of class 9/28 EPF Agenda: Welcome Back! 2) EverFi Day 3) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/28 Strawberry Creame Pie Day

5. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

6. 9/12/2017 Apple unveils premium iPhone X costing $999, along with iPhone 8 If/When you are finished: .....it will be the end of class 9/12 EPF Agenda: Welcome Back! Diamonds Contd. 3 ) Marginal Utility Nearpod 4) Kahoot 5 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/12 Are You Okay Day

7. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

8. 9/13/1224 Francis of Assisi is afflicted with stigmata after a vision praying on Mount Verna If/When you are finished: .....it will be the end of class 9/13 EPF Agenda: 1) Welcome Back! 2) Marginal Utility Nearpod 3) Incentives! 4) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/13 International Chocolate Day

9. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

10. 9/16/2021 Earliest evidence announced for humans making clothes discovered from bone tools 100,000 years old found at Contrebandiers Cave, Morocco If/When you are finished: .....it will be the end of class 9/16 EPF Agenda: Welcome Back! Marginal Utility Assignment 3 ) Opportunity Cost/Instant Gratification Nearpod 4 ) Incentives! 5 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/16 National Play-Doh Day

11. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

12. 9/18/2012 The Chicago Teachers Union and Chicago Public Schools reach a deal that ends an 8-day strike If/When you are finished: .....it will be the end of class 9/18 EPF Agenda: 1) Welcome Back! 2 ) Incentives! Nearpod 3) Kahoot! 4) EverFi 5 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1c 9/18 National Cheeseburger Day

13. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

14. 9/16/2000 Sammy Sosa becomes the second player to hit 50 or more home runs in three consecutive years, joining Mark McGwire If/When you are finished: .....it will be the end of class 9/16 EPF Agenda: 1) Welcome Back! 2) Unit 1 Review 3) K ahoot ! 4) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/16 National Play-doh Day

15. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

16. 9/20/2019 Batman Day - 80th anniversary of the first Batman comic If/When you are finished: .....it will be the end of class 9/20 EPF Agenda: 1) Welcome Back! 2) EverFi Chat 3) Adam Smith Nearpod 4) Give Adam Smith a High Five 5 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/20 National Tradesman Day

17. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

18. 9/24/2021 Notorious Indian gangster Jitender Maan Gogi shot death in a court in Delhi, by men posing as lawyers If/When you are finished: .....it will be the end of class 9/24 EPF Agenda: 1) Welcome Back! 2) Unit 1 Review 3 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/24 National Horchata Day

19. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

20. 9/26/2017 The video game Fortnite: Battle Royale is released, eventually becoming one of the most popular games worldwide If/When you are finished: .....it will be the end of class 9/26 EPF Agenda: 1) Welcome Back! 2) Unit 1 Review 3) Exam! 4) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/26 National Pancake Day

21. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

22. 9/22/1692 Last people hanged for witchcraft (8) in the US, 19 hanged overall, with six other deaths during Salem witch trials If/When you are finished: .....it will be the end of class 9/22 EPF Agenda: 1) Welcome Back! 2) In-Time Movie + Q’s 3 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/22 National White Chocolate Day

23. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

24. 9/23/1387 One of the most extravagant medieval English feasts ever recorded held for Richard II and John of Gaunt in London. Included 14 salted oxen, 120 sheep, 1200 pigeons and 11,000 eggs If/When you are finished: .....it will be the end of class 9/23 EPF Agenda: 1) Welcome Back! 2) In-Time Movie + Q’s 3 ) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/23 Love Note Day

25. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

26. 9/23/1982 Filming begins on "Never Say Never Again" with Sean Connery playing James Bond for the final time If/When you are finished: .....it will be the end of class 9/27 EPF Agenda: 1) Welcome Back! 2) In-Time Movie + Q’s 3) EverFi – Banking Basics 4) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/27 World Tourism Day

27. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

28. 9/28/2012 Nigeria suspends flights to Saudi Arabia after hundreds of Nigerian women travelled without a male escort If/When you are finished: .....it will be the end of class 9/28 EPF Agenda: 1) Welcome Back! 2) In-Time Movie + Q’s 3) EverFi – Banking Basics 4) Wrap-Up Unit 1 – Economics Basics and Market Types Learning Target(s) Focus this Week: EPF 1a 9/28 National Strawberry Crème Pie Day

29. EPF – Target 1c/Target C ( G F H S ) “The student will demonstrate knowledge of basic economics concepts and structures by describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)” Essential Question: What are the effects of Marginal Costs and Marginal Benefits on society? Keywords: Marginal, Costs, Benefits, Decision-making, Government, State, Local

30. Marginal Cost and Marginal Utility Unit I: Economics Basics and Market Types Lesson III

31. Opportunity Cost Opportunity cost is the value of the benefits of the foregone alternative, or the next best alternative that could have been chosen, but was not.

32. Costs Cost: what is given up to receive a good or service All costs are to someone. Costs are subjective. Individuals may value costs differently. All costs relevant to decision making lie in the future Costs may be anticipated, but only occur after a choice is made. Cost ≠ Consequence

33. Costs Sunk cost: a retrospective (past) cost that has already been incurred and cannot be recovered. P rospective cost: a future cost that may be incurred or changed if an action is taken. In traditional economic theory, only prospective (future) costs are relevant to a decision

34. Costs Explicit cost: the actual monetary value given up Ex: The money used for the wages of new employees when a company is working on expanding Implicit cost: The implied cost of using resources already owned Ex: The time and effort that a CEO puts into working on expansion of his company Click to add text

35. The Margin Marginal utility: the additional satisfaction, or amount of utility, gained from each extra unit of consumption. The extra utility gained from one unit of consumption to the next Marginal cost: the cost to produce or consume one more unit of a good or service The extra cost given up for one unit of consumption to the next

36. What is utility? Utility is the total satisfaction received from consuming a good or service In other words it is the benefit Total value for all consumption of a good or service Things that make you happy have high utility Things that don’t have low utility The goal of economists and people is to find the best way to allocate limited resources in order to generate the most utility

37. Law Of Diminishing Marginal Utility As a person increases consumption of a product there is a decline in the marginal utility that person derives from consuming each additional unit of that product Each extra unit adds less utility (benefit) than the previous Dis-utility: where the benefit you receive is negative Ex: you get sick at an all you can eat buffet

38. So What? If the marginal benefit is greater than the marginal cost the decision is good You are giving up less value than you are gaining If the marginal benefit is less than the marginal cost the decision is bad You are giving up more value than you are gaining Make your decision when the marginal benefit (utility) is greater than or equal to the marginal cost

39. Diminishing Marginal Utility Does Homer’s behavior violate the law of diminishing marginal utility? At what point should Homer stop eating?

40. How does your own behavior change when you eat at a buffet? Why? Diminishing Marginal Utility

41. Widget Demonstration Directions Cut the paper in half Fold the paper in half twice Staple it Write a “W” on one side Place in Box 40 seconds per round All workers MUST stay in the Factory

42. Number of Workers Total Widgets +/-