Can someone please help me describe 3 microeconomics ideas, concepts. I need to
ID: 1144952 • Letter: C
Question
Can someone please help me describe 3 microeconomics ideas, concepts. I need to briefly explains how these ideas can make you think about the world differently or at least how they might provide a different perspective on sócio/economic/ political issues.Thanks in advance Can someone please help me describe 3 microeconomics ideas, concepts. I need to briefly explains how these ideas can make you think about the world differently or at least how they might provide a different perspective on sócio/economic/ political issues.
Thanks in advance
Thanks in advance
Explanation / Answer
1) Cost of Production
The cost of production states that the price of an object is actually determined by the total cost of the resources that are needed to make a product. For example - the cost of production depends on various factors like land, labor, capital, raw material availability etc.
2) Monopoly
Monopoly occurs when there is only one company that supplies that product or service. Prices in the monopoly market are stable as there is no competition. As a result, the company can get to make high profits on the whole.
3) Monopsony
Monopsony occurs when there is only one buyer in the market and there are many sellers. As a result of this, only one company that interacts with the buyer makes a lot of profits and the other companies end up in losses.