Saving "the Market” out of Cambridge: “Demand Curve”
Back home after spending the afternoon hours in the library, Alicia faces a dishful of sushi prepared by loving Mom. Alicia, the rational, never grabs several pieces handful. She takes piece by piece, each in its entirety. She never leaves uneaten half, not to mention one thousandth (1/ 1,000) thereof. In economics jargon, the piece as in the dish is the “marginal” unit. There is no question that she is crazy for the very first unit of sushi. The question: Is there any cost taking the first? Yes of course, nothing good comes for free. Yet, the cost of preparing sushi is irrelevant because it is already “sunk.” The relevancy comprises of gaining weight, mouth smell, getting many things around dirty and the feeling of fullness. Wait; does her time at dinner come for free? Never, the time (duration) is the most valuable currency for all of us with limited time of life. Time is the most critical cost because she has many other things to do at each “moment” of life. Is her...