Microeconomics

Stakeholder Definition

Stakeholder Definition

A stakeholder is someone that has an interest in a business because its decisions affect them. These can either be external or internal stakeholders.

Outsourcing Definition

Outsourcing Definition

Outsourcing is where a company hires an external firm to conduct certain aspects of its business. In other words, one business hires another to operate a certain part of its operations.

Mass Production Definition

Mass Production Definition

Mass production is the continuous production of standardized products, usually along an assembly line. It involves making products in large quantities so that they can be provided to the masses. This type of production is able to maintain a consistent level of quality of output, but comes at the cost of a lack of flexibility.

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.