Microeconomics Archives - BoyceWire

Microeconomics

Utility Maximization Definition

Utility Maximization Definition

What is Utility Maximization Utility Maximization Rule Utility Maximization Example Limitations of Utility Maximisation Utility Maximization Definition WRITTEN BY PAUL BOYCE | Updated 19 January 2022 What is Utility Maximization Utility maximisation is the concept that consumers and businesses seek to maximise their satisfaction or utility from their purchases. In other words, when $100 is …

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Monopsony Definition

Monopsony Definition

A monopsony is where there is a sole buyer of a product, but many sellers. This contrasts with the similarly named monopoly, whereby there is only one seller and many buyers.

Market Equilibrium Definition

Market Equilibrium Definition

Market equilibrium occurs when demand and supply meet. At this point, producers of a good are selling exactly how much they produce and consumers are buying exactly how much they want. Most importantly, this comes at a price that both parties are agreeable to.

Price Gouging Definition

Price Gouging Definition

Price gouging is where the seller increases the prices of their goods or services to a level considered unreasonable and unfair. It arises due to a sharp surge in demand, normally as a result of natural disaster such as a hurricane or earthquake.

Excise Tax Definition

Excise Tax Definition

An excise tax is a tax that is levied on specific products, usually in order to create a socially optimal outcome. For instance, cigarettes, alcohol, and fuel are all examples that have an excise tax.

Economic System Definition

Economic System Definition

An economic system is a network that forms the economic relationships between individuals in society. In other words, how the people of a nation come together to create a complex whole and conduct economic transactions with each other.

Introduction to Microeconomics

Introduction to Microeconomics (eBook) Price:   This eBook provides an introduction to basic microeconomic concepts and theories, allowing the reader to develop a fundamental understanding of microeconomics. It covers the majority of microeconomic topics within AP and A Level Economics, ranging from Market Structures to Production and Costs, to Elasticity of Demand. Sent within a couple …

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Tragedy of the Commons Definition

The Tragedy of the Commons Definition

The tragedy of the commons is where shared resources are over-exploited because each individual is following their own self-interest. If each individual only took a limited quantity, there would be enough for everyone. However, due to the self-interest of the individual, many over-exploit the resource and leave nothing left for anyone – hence the tragedy.

Human Capital Definition

Human Capital Definition

Human capital refers to the skills, habits, and other attributes each person possesses. In other words, the attributes that contribute to the production fo the final economic output.

Conspicuous Consumption Definition

Conspicuous Consumption Definition

Conspicuous consumption is where the consumer spends excessive amounts in order to highlight their wealth to society. In other words, they buy expensive items that are not needed, but are bought solely to display their wealth and power to the world.