Market structure refers to the characteristics of market organizations that determine the behavior of companies in an industry. It determines the nature of competition and price and has implications for the market share and profits that companies
Microeconomics
What is the Law of Demand? How does it work?
What's it: The law of demand is a principle in microeconomics, stating a negative relationship between a good's price and its quantity demanded. The quantity demanded increases when the price falls, assuming other factors are unchanged
Minimum Efficient Scale: How It Works
Minimum efficient scale is the lowest point where the long-term average cost is at the minimum point. Prior to this point, the increase in production will be at a reduced average cost (economies of scale). And after that point, the average cost
Market Supply: Meaning, Determinans, How It is Calculated
The market supply represents the total quantity of goods or services that producers are willing to supply at a specific price and time. That is the sum of all individual producer supply.How to determine the market supplyWe calculate market
Price Ceiling: Meaning, Impacts, Pros, Cons
The price ceiling is the maximum price set by the government for certain goods. Sellers are not permitted to sell higher than that price.The government sets a maximum price to protect consumers from conditions that can make goods very expensive.
Labor Market Flexibility: Balancing Growth, Jobs, and Fairness
Labor market flexibility refers to how quickly a workforce adapts to changing economic conditions. In simpler terms, it's a measure of how easily businesses can hire, fire, and adjust wages based on market needs. This flexibility is crucial for
Labor Market Rigidity: Causes, Impacts, and Solutions
Labor market rigidity refers to a situation where wages and employment levels don't adjust as quickly as economic conditions change. This can lead to higher unemployment during recessions and slower job creation during recoveries. Understanding why
External Economies of Scale: Definition, Sources
External economies of scale refer to economies of scale originating from outside the company, rather than by internal companies. It arises when the average cost for each company goes down as the industry's output rises.We can also call it as
Demand Explained: From Individual Choice to Market Trends
Demand is the fundamental force driving every market in the world. It's the reason companies create products, investors seek opportunities, and economies thrive. But what exactly is demand, and how does it work? This comprehensive guide will break
Pure Competition: Meaning, Characteristics
Pure competition is another term for perfect competition. In this market structure, there are many producers and consumers, each not large enough to influence market supply and demand. Marketed goods are homogeneous and are a perfect
Labor Market: Supply, Demand, and the Forces that Shape It
What it is: The labor market is where the demand and supply of labor interact. That is an example of a factor market, which is a market for production factors transactions.In this market, businesses demand labor services offered by
Labor Market Reform: Balancing Flexibility and Fairness for Growth
Labor market reform seeks to reshape the landscape of work towards a more efficient and equitable system. This ongoing process aims to improve employment opportunities for workers while boosting an economy's overall productivity. By fostering a