Posts published in “MICROECONOMICS”

The Paradox of Thrift is a theory which says saving too much is damaging to the economy because people will consume less and companies will produce and invest less.

Nowadays, there are three main economic systems, or the ways a government can organize its economy: Free Market, Command (Planned) and Mixed.

This article is about an oligopoly. It describes the characteristics of an oligopoly market and explains why most markets are oligopolistic.

This article is about a monopoly. It describes characteristics of a monopoly market and explains how the equilibrium model evolves in monopolistic conditions.

This article is about perfect competition. It describes characteristics of a perfectly competitive market and gives assumptions about perfect competition.

This article introduces the characteristics of production in the long run by explaining and visualizing how firms move to the long run production.

This article explains the difference between production in the short run and production in the long run. And, it describes Law of Diminishing Returns.

Let’s take a look at the types of competition in three different types of markets: perfectly competitive, oligopolistic and monopolistic.

This article is about short-run diminishing returns. It defines the concepts of short-run and long-run in Economics and explain the differences.

Here are situations where the market system can fail from provision of demerit goods and merit goods. Government interventions might be necessary.

This article identifies situations where the market system can fail causing market failure: prices too high, when prices too low, fluctuations in price.

This article describes interrelationship between markets. It defines joint demand, competitive demand, derived demand and joint supply.

Cost Benefit Analysis (CBA) is a method which attempts to evaluate the social costs and benefits of a proposed economic activity.

This post is about costs and benefits – both private costs and social costs, and private benefits and social benefits. It also defines the term externalities.

What is an economy? What are three basic economic questions? What are main economic systems. This article helps to identify economic systems.