• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Penpoin.

Better Knowledge. Your Insight Is Sharper

  • Business
    • Starting Business
    • Managing Business
    • Growing Business
  • Investing
    • Investing Fundamentals
    • Investment Options
  • Economic Context
    • Microeconomics
    • Macroeconomics
    • International economics

Market Failure

Social Cost in Economics: Meaning, Components, Formulas, and Effects

August 18, 2024 · Ahmad Nasrudin

What's it: Social cost is private cost plus external cost. Private cost is borne by individuals directly involved in economic transactions or activities. Meanwhile, the external cost is borne by third parties not directly involved in the

Free Rider: Meaning, Examples, Impacts and Possible Solutions

August 18, 2024 · Ahmad Nasrudin

What's it: Free rider is someone who gets benefit from a product at no cost. It appears in the public good because people are free to benefit from the goods without paying. When you consume it, it does not reduce the benefits received by others.

Government Intervention: Examples, Reasons, and Impacts

January 21, 2025 · Ahmad Nasrudin

What's it: Government intervention refers to the government's deliberate actions to influence resource allocation and market mechanisms. It can take many forms, from regulations, taxes, subsidies, to monetary and fiscal policy. In some cases, the

Monopoly Power: Meaning, Sources, and Effects

January 21, 2025 · Ahmad Nasrudin

What's it: Monopoly power refers to a firm's ability to influence market prices. It is weak when the market is made up of many players, and products are relatively homogeneous. Market power is higher when firms operate under an oligopoly, where the

Market Failure: Types, Effects, and Solutions

January 21, 2025 · Ahmad Nasrudin

What's it: Market failure refers to a condition in which the market mechanism doesn't work, thus creating inefficiency in the market. Demand, supply, and price aren't in equilibrium. As a result, markets fail to allocate economic resources most

Externalities: Meaning, Types, and Solutions

January 21, 2025 · Ahmad Nasrudin

What's it: Externalities are costs or benefits of economic activities borne by third parties who are not involved in it. They are not reflected in the final cost or benefit of the goods or services produced.Economists view externalities as

Price Ceiling: Meaning, Impacts, Pros, Cons

January 21, 2025 · Ahmad Nasrudin

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.

Primary Sidebar

TRENDING

  • Span of Control: Importance, Types, Advantages, Disadvantages
  • Top-Level Management: Examples, Roles and Responsibilities, Skills
  • Macroeconomic Equilibrium: Short Run Vs. Long Run

LATEST

  • Key Factors to Consider Before Investing In Fixed-Income Securities
  • 4 Risks Associated with Fixed-Income Investments
  • 4 Benefits Investing in Fixed-Income Securities

Copyright © 2025  ·  Contact Us  ·  About Us  ·  Terms of Use  · Privacy Policy and Disclaimer  · Affiliate Disclaimer·  Comment Policy