Class 16: Marginal value vs Total value

Today, Mr Rizzo talks about the idea of marginal value versus total value. There is no such thing as intrinsic value as it depends on how human actually values on the product itself. Therefore, we can say that the relative scarcity actually determines the price of that particular product, because this is how much we really value them. The idea of sunk cost is also introduced, which is cost that will not be changed when making a decision.