microeconomics

Opportunity Cost Explained

Opportunity cost of a resource is referred to as the value of the next-highest-valued alternative use of that resource. Sounds way too technical, doesn’t it? Let’s try to simplify its meaning with an example. Suppose, at the ice cream parlor, you have to choose between choco chip and black current. If you choose choco chip, …

Opportunity Cost Explained Read More »

Perfect Competition Explained

Perfect competition is a hypothetical market where there is a cut-throat competition, all firms are price-takers and market share has no influence on prices. By the way, make sure you read our recent blog on “Monopoly, Monopsony, Oligopoly and Free Market” to have insightful information on these various forms of market structures Let us have …

Perfect Competition Explained Read More »