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Results tagged with microeconomics
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user 18777
Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).
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Multiple Forgone Job Opportunities and Economic Profit
I'm told that forgone job opportunities are implicit costs, to be included in calculating economic profit, but I can't seem to see how I could list and consider many different forgone opportunities. M …
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Multiple Forgone Job Opportunities and Economic Profit
We don't use all possible opportunity costs. We only use the cost of forgoing the next-best-alternative.
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marginal utility and Marginal rate of substitution
Marginal utility is the increase in utility per unit increase in a good. Marginal rate of substitution is like the exchange rate between two goods given a level of utility.
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Slope of linear demand curve and price elasticity regions along the curve
Elasticity is defined at a point.
$$ \frac{\partial Q}{\partial P} * \frac{P}{Q} $$
A more or less elastic curve just means that the elasticity is higher or lower in general. For example, if you have …
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