Mando joins a team to rescue a prisoner and each member of the team has a different set of skills to help in this mission. This is an example of specialization, specifically labor specialization, and explains the ‘U’ section of the marginal cost curve. This is because as each team member has a different comparativeContinue reading “Mando Joins a Team (Star Wars- The Mandalorian- Episode 6)”
Category Archives: Microeconomics
R2-D2 Faces Discrimination (Attack Of The Clones)
Anakin, Padme and R2-D2 are on a ship in the cafeteria area, when R2 goes to the foodservice area to get food for Padme. R2 is told by another Droid, who is serving the food, that there are “no Droids!” allowed to get food. This is an example of discrimination that some individuals have facedContinue reading “R2-D2 Faces Discrimination (Attack Of The Clones)”
Obi-Wan Learns About Clones (Attack Of The Clones)
Obi-Wan is learning about the production process of Clones. There are intense training programs and growth acceleration that allows the production time to be cut in half. This is similar to the production of other goods that have the optimal inputs and allow for more efficient production. It is important for a firm to chooseContinue reading “Obi-Wan Learns About Clones (Attack Of The Clones)”
Anakin Freed as Slave and Leaves to Train as a Jedi (The Phantom Menace)
Anakin Skywalker has been freed from slavery by Qui-Gon Jinn and he now wants to become a Jedi, as is believed to be his destiny. However, Anakin’s mother has not been freed, thus, the opportunity cost of Anakin going to be a Jedi is that he has to leave his mother forever. Opportunity Cost isContinue reading “Anakin Freed as Slave and Leaves to Train as a Jedi (The Phantom Menace)”
Farmers Hire Mando as Protection (The Mandalorian- Episode 4)
Mando is hired by a town to protect the farmers and their village from raiders, who have stolen all of their crops. One of the main differences between developing and developed countries is Institutions. Institutions are the rules placed in a society that keep parties’ behaviors in balance (such as the enforcement of the lawContinue reading “Farmers Hire Mando as Protection (The Mandalorian- Episode 4)”
Toro Contracts Mando for a Job (The Mandalorian- Episode 5)
Mando is hired by Toro Calican, who is wanting admittance into the guild. By hiring Mando, he also licenses him. Licensing, which is an agreement that allows one party, Mando, permission to work for another party, Toro, results in a barrier to entry and in turn results in higher prices (wages). Barriers to Entry areContinue reading “Toro Contracts Mando for a Job (The Mandalorian- Episode 5)”
Mando Faces Hold-Up Problem (The Mandalorian- Episode 1)
Mando meets with Greef Karga, who he captured a few prisoners for, now faces a new price after he has already done the work. Mando must either accept imperial credits (which he does not want as the Empire has fallen) or Calamari Flan (but he will only get half of the agreed-upon amount). As heContinue reading “Mando Faces Hold-Up Problem (The Mandalorian- Episode 1)”
Mando Pays Premium for a Human Driver (The Mandalorian- Episode 1)
Mando is unwilling to ride with a Droid driver. He ends up paying more to get poor service (vehicle in disrepair) from a non-Droid driver. It is cheaper for the firm to provide Droid drivers instead of human drivers, so Mando must pay more for the human driver. This is due to the increase inContinue reading “Mando Pays Premium for a Human Driver (The Mandalorian- Episode 1)”
Mando and the Mechanic Talk About the Ship (The Mandalorian- Episode 5)
Mando has insisted that the mechanic not use Droids on his ship. This has resulted in her spending more time than necessary doing the repair work (thus increasing the costs). This is an example of non-optimal input choices. This can happen in the production processes when by law (or, as in this case, customer restrictionsContinue reading “Mando and the Mechanic Talk About the Ship (The Mandalorian- Episode 5)”
R2-D2 and C-3PO Use an Escape Pod (A New Hope)
R2-D2 and C-3PO escape from a Rebel Alliance ship via an escape pod. The Empire briefly considers the benefits of destroying the pod, but they do not because there are no lifeforms in the pod. Because of this, it is not worth it for them to shoot it down. The cost of shooting the podContinue reading “R2-D2 and C-3PO Use an Escape Pod (A New Hope)”