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Marketing Essentials Chapter 1, Section 1.2 . People must make choices to satisfy their needs and wants. Moving information from a curved surface to a flat surface causes distortions. Key Concepts and Summary Economics seeks to solve the problem of scarcity, which is when human wants for goods and services exceed the available supply. Key Terms marketing goods services marketing concept Marketing Essentials Chapter 1, Section 1.1 . Key Terms, cont.Key Terms, cont. • thinking at the margin: the process of deciding how much more or less to do • cost/benefit analysis: a decision-making process in which you compare what you will sacrifice and gain by a specific action • marginal cost: the extra cost of adding a unit Explain the fundamental economic problem. 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