Average fixed cost (i.e., AFC) is defined as the sum of all fixed costs of production divided by the quantity of output. That means AFC describes the share of all fixed costs that can be attributed to each unit. This is important for firms when it comes to production decisions […]
Read moreMonth: June 2018
The World’s Top 10 Economies by Per Capita GDP
GDP is, without a doubt, one of the most common measures of economic strength. It is used by economists and policymakers to measure and compare the economic power of countries all around the world (see also Gross Domestic Product). In an earlier article, we have created a list of the […]
Read moreThree Measures of Money Supply
Money supply (i.e., money stock) is defined as the total quantity of money circulating in the economy at a particular time. Many countries commonly use it as an indicator of economic performance. However, in our financial system, money is not limited to cash anymore. There are several other physical and intangible […]
Read moreDifference between Individual and Market Supply
In economics, supply is defined as the quantity of a specific good or service that producers are willing to provide over a given period of time. This definition looks at all producers combined (i.e. aggregate data). However, individual producers may be willing to provide significantly different quantities of any given […]
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