Microeconomics

What is Natural Monopoly? A natural monopoly is a type of monopoly that arises due to economies of scale in production, where the most efficient production leve…

What is a Perfectly Competitive Market? A perfectly competitive market is a theoretical economic model where many firms compete with each other to sell homogene…

What is the Law of Diminishing Return? The Law of Diminishing Returns is an economic principle that states that as an increasing amount of one input is added to…

What is the Price Ceiling? A price ceiling is a government-imposed limit on the price that can be charged for a good or service. In other words, it is a legal m…

What is Price Discrimination? Price discrimination is a pricing strategy where a company charges different prices to different customers for the same product or…

What is Price Floor? A price floor is a government-imposed minimum price that is set above the market equilibrium price. The purpose of a price floor is to prot…

What is Marginal Product? Marginal Product in economics refers to the additional output or product that is generated by adding one more unit of input or factor …

What are Inferior Goods Inferior goods are goods that the demand increases when the consumers’ income decrease. Conversely, the consumers’ will demand fewer inf…

What is the Production Possibility Curve Production possibility curve is a curve that measures the maximum combination of outputs that can be obtained from a gi…

What is Price Elasticity of Supply Price elasticity of supply is a measure of how responsive the quantity supply of a good is to a change in price. The price el…

What is Cross-Price Elasticity of Demand Cross-price elasticity of demand is refer to the responsiveness of demand to the change in prices of related goods (als…

What is Income Elasticity of Demand Income elasticity of demand refers to the change in demand that is affected by the changes in income. The income elasticity …