Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. This concept quantifies the incremental benefit derived from increased consumption and is governed by the law of diminishing marginal utility, which states that as consumption rises, the added satisfaction from each additional unit typically decreases. The…

Scarcity is the economic concept that refers to the limited availability of resources, such as time, money, and raw materials, in relation to the unlimited wants of consumers. This limitation necessitates effective resource allocation and drives demand, influencing market prices. The article explores the implications of scarcity on resource distribution, highlighting the concept of opportunity…

Market structures refer to the organizational and competitive characteristics that define how firms interact and compete within an industry. There are four primary types of market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Each structure has unique attributes that influence pricing, output, and market power. Perfect competition features numerous firms with identical products, while…