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Price elasticity of demand or PED is a very useful concept in microeconomics. In order to understand this, lets quickly talk about what demand is. Demand in economics refers to the willingness and ability...

Firms in a perfectly competitive market can make supernormal profits but only in the short run. Supernormal profit is made where average revenue exceeds average cost. In a perfectly competitive market, fi...

A Nash equilibrium is a common solution concept used in game theory for non-cooperative (i.e. players cannot work together or communicate), 2+ player games where given all other players' strategy choices,...

So economies of scale is an economic theory which explains why large firms tend to have cheaper per unit costs than smaller companies. The theory basis its ideas around a few key issues. There are many wa...

Aggregate Demand is the total demand in an economy for goods and services and is made up of 5 main components:Consumption, Income, Government Expenditure and (Exports-Imports).