Use versus Exchange (October 7th, 2011)

How much of this action changed my cost?
Thinking about the margin or Marginal Cost.
Rizzo might be a typical selfish person that you may understand. The idea of being selfish and selfish has little meaning.
Without the margin, does that mean his friend would be helping others and not sleeping since it's a self-action. For example studious, laziness, etc.
What about drugs and the availability of it to the public? My house is clean and I'm comfortable around it.
By waiting to release an album every year is a better marginal cost to maximize the happiness of his fans and gains the payment of it. If we watch groundhog day everyday, would the media post it everyday? No because it will become a norm. Allocation of resource in something else.

Use vs. Exchange
The relative scarcity of teachers and an athlete.
Teachers are much more common whereas athletes need to physically fit and defined in a sort of way that is a scarce resource.
We eliminate all athletes and teachers. Almost positive to pay a teacher more than MBA players.
We clearly value the teacher than the athlete even before he gets paid more.
Teacher as a total is more important than the marginal athlete which is the use versus exchange.
Scenario of the woman doing the same type of work out one gets paid more than the other. (Monetary versus Non-monetary wealth)
What becomes valuable? The book or the fly swatter?
The value is subjective and can matter different throughout our interpitation. It's not the water but when and why we need to that water makes it cost differently to others.
Sunk Cost - Cost where resources are not recoverable as I make my decisions.
It's like you have a relationship for a long time and staying with her for another year. What is the point if you will  not get the years back?
Bad economics decisions when you ignore some cost but good ones when you want to avoid costs.
Humans act with purpose
People respond to incentives.
Behavior will change when the benefits and cost change which is the law of unintended consequences. Often times decisions can make pattern decisions based on actions. How can someone know? You can't.
It changes the cost of getting into an accident if you wear the seat belt. We are becoming murders. If you care about safety and allocate resources and spend it on something else like health care and save peoples lives.