Externalities

posted in: Microeconomics | 0

When one speaks in the national economy of so-called externalities, one basically means economically oriented decisions of companies that unintentionally hit uninvolved market participants. The person causing the damage, ie the company here, does not compensate. The injured and uninvolved … Continued

Perfect Competition

posted in: Microeconomics | 1

The principle of perfect competition is a theoretical idea in the economy, which in this form will probably not exist in the longer term. In order for the condition of perfect competition to be fulfilled, certain conditions must be fulfilled. … Continued

Absolute Advantage

posted in: Microeconomics | 1

Definition: what is absolute advantage? Roughly speaking the absolute advantage is about division of labor and specialization. The basic idea behind the absolute cost advantage is to find out where a particular product can be produced more cost-effectively than in … Continued

Company Concentration

posted in: Microeconomics | 0

In the term (corporate) concentrations are in the national economy to the agglomeration of economic powers. The reason for this merger is usually the stipulation of one-sided terms of contract that one would like to achieve. Performed Concentrations for example, … Continued

Elasticity

posted in: Microeconomics | 0

Supply and demand regulate the price of a commodity . This is certainly true not only in theory but also in practice. Everyone has already had the experience and / or had to make that a scarce supply leads in … Continued

Capital

posted in: Investment and Financing | 0

Capital Definition: The term “capital” has different meanings. Economists speak of capital as a third economic factor for production as a whole. In economics, the term appears as equity or debt in corporate balance sheets. Colloquially, capital is mentioned when … Continued

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