Difference between Cournot and Bertrand Competition

Difference between Cournot and Bertrand Competition

An oligopoly is a market structure where only a few sellers serve the entire market. Because of their strong position in the market, these firms have the power to influence the price. That means, unlike in a market with perfect competition, they are no longer price takers, but price makers. […]

Read more
World's Top 10 Economies by Per Capita GDP

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 policy makers 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 […]

Read more

Difference 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 […]

Read more
The world's top 10 Economies by GDP

The World’s Top 10 Economies by GDP

Gross Domestic Product (i.e. GDP) is one of the most common measures of economic output and strength.¬†Virtually all countries around the world measure and report their GDP on a regular basis. This allows us to directly compare their economic power. Fortunately, the World Bank provides a comprehensive database of economic […]

Read more
Difference between Individual and Market Demand

Difference between Individual and Market Demand

In an economic context, demand is defined as the quantity of a specific good or service that consumers are willing and able to buy over a given period of time. As you can tell, this definition looks at all consumers combined (i.e. aggregated data). However, individual consumers may have different […]

Read more
How to Calculate Economic Profit

How to Calculate Economic Profit

Economic profit is defined as the difference between total revenue and total cost, including both explicit and implicit cost. The inclusion of implicit cost is what separates economic profit from the more common accounting profit (which only accounts for explicit cost). Even though the latter is more commonly used in […]

Read more
The Three Types of Trade Barriers

The Three Types of Trade Barriers

Trade barriers are restrictions on international trade imposed by the government. They are designed to impose additional costs or limits on imports and/or exports in order to protect local industries. These additional costs or increased scarcity result in a higher price of imported products and thereby make local goods and […]

Read more
How to Calculate Marginal Revenue

How to Calculate Marginal Revenue

Marginal revenue is defined as the revenue gained by producing one more unit of a product or service. Therefore, it is sometimes also referred to as the revenue of the last unit. In economics, the concept of marginal revenue is very important because it helps firms to make efficient production […]

Read more
How to Calculate Marginal Cost

How to Calculate Marginal Cost

Marginal cost is defined as the cost incurred by producing one more unit of a product or service. Therefore, it is sometimes also referred to as the cost of the last unit. The concept of marginal cost is extremely important in economic theory because it is one of the foundations […]

Read more
The Four Types of Economic Utiltiy

The Four Types of Economic Utility

In the field of behavioral economics we often come across the term utility. In this context, utility refers to the perceived value (i.e. usefulness) an individual receives when they purchase a good or service. There are four different types of utility: form utility, place utility, time utility, and possession utility. […]

Read more
1 2 3 6