What's it: a monopoly is a market structure with only one seller and serving many buyers. The seller is called a monopolist. Unlike in perfectly competitive markets, the monopolist has absolute control over market supply and prices. Since there
Microeconomics
Behavioral Economics: Importance, Examples of Concepts
What's it: Behavioral economics is a branch of economics on how psychological factors influence and explain economic decision making. It studies the cognitive, emotional, cultural, and social effects on decisions made by economic
Social Cost in Economics: Meaning, Components, Formulas, and Effects
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
Abnormal Profit: Meaning, Formula
What's it: Abnormal profit occurs when the firm earns a higher than normal profit. It occurs when total revenue exceeds total economic costs (implicit costs plus explicit costs). Also known as supernormal profit or economic profit. When a
Marginal Benefit: Definition, Examples & Relationship With Demand Curve
What's it: Marginal benefit is an extra utility you get when adding one more consumption of goods. The utility can be satisfaction or happiness you get. Suppose we quantify the value of marginal benefits. In that case, it is equal to the
Goods markets
Goods markets are markets in which companies and households interact to buy and sell the output of goods and services. In this market, households act as buyers, while companies act as sellers. This role is the opposite of the factor market, the