Need assistance with this discussion relevant passages Discussion 3 \"If someone

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Need assistance with this discussion relevant passages Discussion 3 "If someone found a gold mine in France, it does not follow that it would be to our interest to work it. In fact, it is certan that the enterprise should not be undertaken if each ounce of gold absorbed more of our labor than would an ounce of gold bought from Meaco with cloth. In that case it would be better to continue to regard our looms as gold mines And what is true of gold is no less true of iron Frédénc Bastiat, Economic Sophisms 1 Analyse Bastiat's argument 2. Discuss the underlying economic ideas you have studied in Chapter 2 in the argument Displaying 1 to 4 of 4 items up fo

Explanation / Answer

1. The argument is that the marginal benefit of gold mining should be higher than the marginal cost of gold mining, If the marginal benefit is lower than the marginal costs, it is not economic to pursue mining gold. This is a valid economic argument.

2. The underlying economic principle is marginal analysis. According to marginal analysis, economic decisions should be made by comparing the marginal costs and marginal benefits. According to marginal analysis, an economic decision should be undertaken only when the marginal benefits are higher than the marginal costs.

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