An attempt to make economics easy to understand
Basic Concepts of Economics
Monopoly Definition Monopoly, in economics, implies presence of a single supplier or producer of a product. ‘Mono’ means single and ‘Poly’ means supplier. Thus, monopoly, is a market structure characterized by a single supplier of a commodity which doesn’t have close substitutes. Since there is a single producer and there is lack of competition, the … Read more
Oligopoly Meaning Oligopoly is a market space where only few sellers or producers exist. Oligopoly mostly happens in those markets where goods are broadly the same and provide similar benefit to consumers. Since products offered by these producers are broadly the same, if one firm raises price, they would risk losing market share to the … Read more
Opportunity Cost Meaning Opportunity cost is the benefit foregone or loss of value that is incurred when one alternative is chosen over the other. Mathematically, opportunity cost is the difference between the expected return from option foregone and the expected return from the option chosen. Looking at opportunity costs, might help you make better investment … Read more
Stagflation Meaning Stagflation is a made from joining two word – Stagnation and Inflation. A country is said to be in stagflation when it is facing slow growth, reflected by high unemployment (stagnation) along with a rise in prices (inflation). Typically, when there is a slowdown in the economy, unemployment is high, consumer demand is … Read more
Inflation Definition Inflation is an increase in prices, or more generally, how expensive it has become to purchase certain goods and services over a period of time. If there a rise in inflation, you would be able to buy lesser from say $100 than you could a year back. How is Inflation Measured? Since … Read more