Economic decision-making

In this Topic you will:

• develop an understanding of outcomes in the market which occur as a result of the motivations, opportunities, and decision-making abilities of consumers and firms within the market.  
• explore production choices using the production possibility frontier (PPF) model to understand the concept of opportunity cost, trade-offs, and the effects on economic growth.
• consider decision-making using cost-benefit analysis (CBA), and understand and explore the ideas of private costs and benefits, external costs and benefits, and social costs and benefits, and how these are used by economists to guide decision-making.
• examine the various market structure:
  • monopolies
  • oligopolies
  • monopolistic competition
  • perfect competition.