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Foundations of Economics: The Law of Scarcity
Foundations of Economics: The Law of Scarcity Most of the basic laws of economics focus on ways to efficiently build...
Microeconomics Profit Maximization: Shutdown Point
Determining the Shutdown Point of a Firm This continues a previous post on profit maximization. The question we want to...
Microeconomics Cost Formulas
Here is a list of some of basic microeconomics formulas pertaining to revenues and costs of a firm. Remember when...
Trade Offs and Indifference Curves
Before we talk about choices, preferences, trade-offs and indifference curves, we should briefly look over some key terms. We assume...
Shapes of Indifference Curves
The shapes of indifference curves are smooth with unique tangent at any bundle we have well define marginal rate of...
Intro to Demand Theory – How to Manage Constraints
Welcome to the next section following a discussion on utility and indifference curves (preferences of consumers). We are now into...
Cobb Douglas Function – Demand Theory
In the past installments from DiscussEconomics on demand theory, now we’re venturing into the graphical and mathematical expressions of the...
Demand Theory – Consumer Choice Problem
Normal, Inferior, Neutral, Luxury, Necessary Goods There are three fundamental questions about a consumer’s consumption response: 1. How will demand...