Fundamental Assumption Example Two:

 

 

You wake up in the middle of the night needing to urinate.  You are very comfortable in a nice warm bed.  The house is freezing, floors are cold, and it’s a long walk to the bathroom.  What do you do?  You make a decision based on the fundamental assumption of economics: you compare the expected marginal cost with the expected marginal benefit!

 

 

This is applied economic analysis at its best.