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Incomplete markets
An incomplete market is one where some of the necessary conditions for market formation exist,…
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Pure public goods
The market mechanism is likely to fail to supply pure public goods because entrepreneurs are…
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Missing markets
A significant market failure is the failure to produce some goods and services, despite being…
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The nature of economics
Economics is the scientific study of the ownership, use, and exchange of scarce resources - often shortened…
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Index numbers
Economists frequently use index numbers when making comparisons over time. An index starts in a…
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Marginal analysis
Economic decisions are taken in a marginal way, which means that decisions to produce, or consume, are…
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Increasing opportunity cost
Opportunity cost can be thought of in terms of how decisions to increase the production…
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Interpreting PPFs
Firstly, we can describe the opportunity cost to Mythica of producing a given output of computers or textbooks. For…
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Production possibility frontiers
An opportunity cost will usually arise whenever an economic agent chooses between alternative ways of…