Economies of Scale

An economy of scale is achieved when increasing the scale of production decreases long-term average costs. In other words, the cost of production per unit decreases as a company produces more units. Reducing the cost per unit of production is the most significant advantage created by economies of scale.For example, if we are producing a video…
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Cornucopia

The term cornucopia has its roots in Greek mythology. Cornucopia translates to the "horn of plenty", which magically supplied its owners with endless food and drink. Thus the cornucopians are sometimes known as "boomsters", and their philosophic opponents—Malthus and his school—are called "doomsters" or "doomers." Theory of Cornucopia in Economics…
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The Gig Economy

The concept of a gig economy (or sharing economy) is engraved in our human instinct. Cooperative structures that include sharing, individual choices, gifting and swapping are a basic part of any community. However, to adopt the gig economy as a business structure is relatively new.What is the Gig Economy?The term “gig economy” has only…
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Monopsony Market Structure

A monopsony is a situation of the market wherein only one buyer exists in a particular area, typically along with many sellers. These sellers end up competing for the buyer’s purchases by lowering their prices.In the case of both monopsony and the much more well-known situation of monopoly, market conditions are imperfect. However, monopolies…
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The Business Cycle

The different phases that an economy goes through over time, such as periods of booms (expansions) and economic recessions (contractions), is known as the business cycle or the trade cycle. One entire business cycle is the completion of an expansion and a contraction sequentially.The line through the business cycle is known as the trend line,…
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Structural Unemployment

Structural unemployment results from mismatches between the skills required for available jobs and the skills held by the unemployed. Even when there is plenty of job availability, this mismatch means the unemployed cannot access jobs that fit their skill sets.Structural employment is often rooted in major economic shifts. Deindustrialization…
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