Economies of Scope: Definition and Examples
Economies of Scope is the cost benefit a firm gets when it maximises the use of its resources.
Microeconomics
The brand of economics that looks at the behaviour of individuals and businesses. In other words, it examines how consumers and businesses react to changes in variables. For example, how do consumers react to price changes and how does quality affect this decision making.
Economic Profit Definition
Economic profit is a firms total revenue minus its total costs, including implicit and explicit costs.
Market Share: Definition, Formula & Example
Market share refers to the percentage of a market a business owns, usually determined by its total revenue as a percentage of the overall market.
Inelastic Demand: Definition & Examples
Inelastic demand is where the demand for a good does not significantly respond to changes in price.
Pareto Principle: Definition, Pros, Cons & Examples
The Pareto Principle is the idea that 20% of causes lead to 80% of effects. In other words, a minority of factors cause the majority of results.
The Tragedy of the Commons: Definition & Examples
The tragedy of the commons is where shared resources are over-exploited because each individual is following their own self-interest.
Asymmetric Information: Definition, Causes & Examples
Asymmetric information or information asymmetry is where one party in a transaction has more information than the other.
The Invisible Hand: Definition, Pros, Cons & Example
The invisible hand was first coined by Adam Smith who explained how the self-interest of the individual benefits the rest of society.
Social Capital: Definition, Types & Examples
Social capital refers to the links and bonds formed through friendships and acquaintances.
Coase Theorem: Definition & Example
Coase theorem is the idea that under certain conditions, the issuing of property rights can solve negative externalities.
