When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
The Wealth of Nations was written
1776
Rational
(in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
Rational agents will select the choice which presents the highest benefits
Producers act rationally by
Selling goods/services in a way that maximises their profits
Workers act rationally by
Balancing welfare at work with consideration of both pay and benefits
Governments act rationally by
Placing the interests of the people they serve first in order to maximise their welfare
Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
If you add up marginal utility for each unit you get total utility
Packet forwarding decision
1. Determine if routing table has matching route
2. If no matching route, drop packet
3. If matching route, forward packet to next hop
Routers need routes to forward packets to destination networks
Routes provide instructions on where to forward packets
There are two possible paths for packets from PC1 to PC4: via R3 or via R2
Using the path via R3, not the path via R2
Routers need routes to both source and destination networks for two-way reachability
Routers don't need routes to all networks in the path, just the next hop
Routes needed by routers
R1 route to 192.168.4.0/24
R3 route to 192.168.1.0/24
R3 route to 192.168.4.0/24
R4 route to 192.168.1.0/24
Next hop IP address
IP address of the next router interface to forward packets to
Configuring static routes
1. Enter global config mode
2. Use 'ip route' command with destination network, mask, and next hop IP
Static routes can specify exit interface instead of next hop IP
Static routes can specify both exit interface and next hop IP
Ping test successful, indicating two-way reachability between PC1 and PC4
Packet encapsulation/de-encapsulation
1. Packet has destination IP, encapsulated in frame with next hop MAC
2. Frame de-encapsulated, re-encapsulated with new next hop MAC
3. Final frame has destination IP and MAC of same device
Configuring static routes
1. Specify next-hop IP address
2. Specify exit interface
3. Specify both next-hop IP and exit interface
Default route
Route to 0.0.0.0/0, the least specific route possible that includes every possible destination IP address
If the router doesn't have any more specific routes that match a packet's destination IP address, the router will forward the packet using the default route
A default route is often used to direct traffic to the Internet
Configuring a default route on a Cisco router
IP ROUTE 0.0.0.0 0.0.0.0 <next-hop IP address>
The 'Gateway of last resort' is another name for 'default gateway'
When configuring a default route, the network address and netmask are both 0.0.0.0
A static route with an asterisk (*) next to it in the routing table means it is a 'candidate default' route
You cannot specify the prefix length with a slash when configuring a static route on a Cisco router, you must write out the netmask
When configuring a static route and specifying only the exit interface
It appears as directly connected in the routing table, using a technique called Proxy ARP
Proxy ARP is beyond the scope of the CCNA
The code 'S' in the routing table indicates a static route
The code 'C' in the routing table indicates a connected route
You cannot configure a network address on an interface
To know all destination networks, R3 would need to be configured with 4 static routes