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.

Importance of Entrepreneurship

Importance of Entrepreneurship

Entrepreneurship is the act by an individual to start and develop their own business. This involves the willingness to take risks in the hope of profit. We can look at the founders of Microsoft, Bill Gates and Paul Allen, as entrepreneurs. They both invested both time and money into starting and developing Microsoft.

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

Table of Contents What is Utility Maximization Utility Maximization Rule Utility Maximization Example Limitations of Utility Maximisation Utility Maximization FAQs Utility Maximization Definition Written by Paul Boyce Posted in Microeconomics > Consumer Theory Last Updated October 28, 2022 What is Utility Maximization Utility maximisation is the concept that consumers and businesses seek to maximise their

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.