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Downward sloping straight line - PowerPoint PPT Presentation

Neoclassical Theory

Neoclassical Theory. Problems With Classical Theory. Labor Theory of Value unrealistic Assumption of constant opportunity costs too restrictive Demand is largely ignored. Increasing Opportunity Cost. The PPF is bowed out, not a straight line

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2.44k views • 50 slides

Lecture 4

Lecture 4. The Theory of Consumer Behavior Utility Maximization. Utility. Definition : Utility refers to the satisfaction derived from consuming a good or a service.

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210 views • 11 slides

Lecture 5

Lecture 5. Indifference Curve. Indifference Curve (IC) : It shows the combination of goods or services that yields the same level of utility.

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180 views • 9 slides

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Downward sloping straight line - PowerPoint PPT Presentation

Neoclassical Theory

Lecture 4

Lecture 5