Balanced Inflation Consider its title “Balanced”, a type of inflation when all the prices increases proportionately. So its more like an increase in the prices of all of the Products rather just a few. This kind of inflation manage your money matters accordingly as you know that the cost of all products are increasing. Unbalanced Inflation On the other hand Unbalanced Inflation has its effects...
Academic Blog
Get free chapters, case studies and economics analysis on updated topic in your email.
Microeconomics
Macroeconomics
Health Economics
Environmental Economics
Urban Economics
Statistics
Mathematics
Microeconomics
Macroeconomics
Econometrics
Statistics
Mathematics
Misc
Anticipated and Unanticipated Inflation
Anticipated Inflation We can simply understand this phenomenon by its title “ANTICIPATED” , which means Predicted or “KNOWN”. Such a “PREDICTED INFLATION” does not cause enough harm to the people since you can handle it by proper planning. For Example you know that the Price of household products may increase for some known factor that has caused the prices of Inputs to rise. As a result, you...
Difference Between Inflation, Deflation and Disinflation
Deflation and Disinflation are not the same. Although they all show the behavior of Price level but They are different in their direction and change in the Rate of Price Level. Deflation means an opposite to Inflation Or Falling Price (just like we have rising prices in Inflation). A deflation does not have a positive impact all the time. Off course, every person would want to have falling...
What Is Inflation? Definition, Measurement, Costs and Who Really Pays
Inflation is not an increase in all prices, and disinflation is not deflation. A complete guide to what inflation is, how CPI and the GDP deflator measure it, why the Boskin Commission found CPI biased, who wins and loses, and why hyperinflation is a fiscal phenomenon in monetary clothing.
Perfect Competition: Profit Maximization in Short Run
There is a very basic concept of understanding Profit maximization either for Perfect Competition or another market model. For almost all markets, the concept is similar. Total Revenue If Q is output of the firm, Total Revenue is : Total Revenue = Price x Quantity TR=P*Q Profit Profit (PIE)= Total Revenue - Total Cost P=TR-TC So a profit for a firm is the difference between the Revenue it...
Perfect Competition: Assumptions, Equilibrium, Efficiency and Why the Model Still Matters
No perfectly competitive market has ever existed — and it is still the most important model in economics, because it is the only structure where the invisible hand provably works. The complete guide: the five assumptions, P=AR=MR, the shutdown rule, the zero-profit theorem, allocative and productive efficiency, the welfare theorems, Schumpeter’s dynamic-efficiency objection, and Baumol’s contestable markets. With calculus and four practice questions.
Production: What is Average and Marginal Product ?
Why do we need to know about Average and Marginal Product ? When we are talking about Production with One variable or in other words when we a firm is producing something with the limited constraint of having a fixed variable , say Capital in the Short-Run. Also, only being able to change another variable say Labor and it is in a tough competition of increasing its Output. There comes the part...
Monopoly: Marginal Revenue, Deadweight Loss, Price Discrimination and the Three Real Costs
In 1911 the US broke up Standard Oil and Rockefeller got richer. The complete guide to monopoly: the Amoroso-Robinson relation, the Lerner index, why a monopolist has no supply curve, the three degrees of price discrimination, natural monopoly regulation — and why Harberger’s deadweight-loss triangle is the smallest of monopoly’s three costs, alongside Tullock’s rent-seeking and Leibenstein’s X-inefficiency. With full derivations and four practice questions.
Cost: Economies of Scope
Economics of Scope A condition in which a combined output of a Single Unit/Firm can produce more than Two different firms which produces the same product. There are valid possibilities of such firms which has Economics of Scope. For Example: Automobile Production Companies like Ford, Toyota etc which are produced in there Industries and later on distributed worldwide. You can also infer that...
Production with Fixed Input
After the basic concept of Production Function and Production Decision. We now move on to Production techniques with one variable or you can also name it as Production Techniques in the Short-Run. One of the Most basic Example of Inputs of Production used is the Capital and Labor, considering Labor as a variable input and Capital as fixed. To increase the amount of Production in the Short Run...
10% discount on books.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.