jamesoswald

5 ms·

1. 1.▲
   by jamesoswald 14y ago

   The implication is actually that cat videos are more enjoyable per instant than opera. If that were not the case, people would always watch opera. But if there were a high fixed cost, such as a ticket price, or the mental energy required
2. 2.▲
   by jamesoswald 14y ago

   Typically, the independent variable is on the x axis and the dependent is on the y. Most modern economists consider price independent, hence the axes are reversed. The convention was created by Alfred Marshall and everyone has stuck to it
3. 3.▲
   by jamesoswald 14y ago

   I wrote the post in October of 2011, but people have reblogged it recently in response to Alchian's death.
4. 4.▲
   by jamesoswald 14y ago

   (Original Author): Relative. In the wine example, if you add a fixed cost, total absolute consumption will decline, but relative consumption of the more expensive one will increase. Likewise, when fixed costs are lower, absolute consuptio