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.
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.
Corporate Social Responsibility (CSR) is a type of corporate strategy that looks at how the business can better society as a whole. These can target moral issues such as environmental protection and animal testing, to more ethical acts such as charitable fundraisers.
A competitive advantage is where one business has an edge over anothers. In other words, it is what makes the business stand out from other competitors in the market.
A stakeholder is someone that has an interest in a business because its decisions affect them. These can either be external or internal stakeholders.
Laissez faire economics is characterised by the absence of government involvement in the economic interactions between parties.
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 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.
Marginal propensity to consume refers to the percentage of the additional income that is spent. In other words, if a person was given a $1 – how much of that will they spend and consume.
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
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.
