Costs
Diminishing returns Diseconomies of scale Economies of scale Objectives of firms Efficiency Production Possibility Frontiers Diagram of costs Opportunity cost Profit Profit and revenue Profit maximisation Do firms maximise profit?
Search Results for: opportunity cost definition
Solutions for UK Housing Market
We face multiple housing crises all at the same time. Mortgage rates are soaring, yet renters face a broken market for years with rising rents and a shortage of properties. Buying is out of reach for many, but renting is just as bad. There is a growing division between an elder generation who have paid …
To what extent did Covid cause inflation?
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …
Profit-push inflation
Profit-push inflation is when firms use their market power to put up prices, contributing towards inflation. It is a form of cost-push inflation. Profit-push inflation is sometimes known as ‘greed inflation’ and is related to price gouging. Profit push inflation is not the primary cause of inflation, but it can accelerate existing inflationary pressures. Profit-push …
OCR AS economics revision guide
- Specific OCR AS revision guide (unit 1 + 2) – just £4.50
- Updated for the new OCR economics syllabus (first exam 2016)
- Last updated 27 June 2022.
- Trademark simplicity and clarity of presentation.
- Relevant diagrams and evaluation to go with basic definitions and concepts.
- E-book, comes in PDF format
- For schools – See: Network License – AS OCR Economics (£45.00)
- Complete A-level OCR economics revision guide
Zero-Sum games in economics
A zero-sum game is a situation where one party benefits at the equal cost of another. If we add gains and losses the net benefit will always be zero. If two players have an arm wrestle challenge, there can only be one winner and one loser. It is not possible to arm wrestle and both …
Difference between consumption and investment
Consumption is the purchase of goods and services for the acquisition of current utility. Investment is expenditure on capital goods for the acquisition of future utility. Investment increases the capital stock. Examples of the difference between consumption and investment A householder buys a car so that they can travel around to work and leisure activities. …
Applying economics in everyday life
At the start of the academic year, I always feel a little pressure to justify the study of economics. Students come up asking things like, should they do economics or history? It’s hard to know what to say, but to get people excited about economics it’s good to try and think how economics can be …