The Continuum of Market Structures

In most economic textbooks and lessons we teach four market structures. Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly. And we tend to get told that these structures are completely independent and unique from each other. However, this can cause some confusion amongst students, especially those who actually stop and think about it for a minute… Continue reading The Continuum of Market Structures

Fixed and Variable Costs

All costs firms fall into one of two categories. They will be fixed costs which are costs that don’t vary with output. Or they will be variable costs which do vary with output. If we took the example of a firm making dresses a fixed cost could be a dress factory. The cost of this… Continue reading Fixed and Variable Costs