Questions tagged [economics]

Chiara Sat Jan 18 2025 | 6 answers 1374

I am studying economics and came across the concept of opportunity cost. I want to understand what opportunity cost means in the context of microeconomics, specifically at a basic or introductory level.

Tommaso Fri Jan 17 2025 | 5 answers 972

The invisible hand theory, proposed by Adam Smith, suggests that individuals pursuing their own self-interests in a free market economy can unintentionally promote the public interest, as if guided by an invisible hand. This theory highlights the efficiency of the market mechanism in coordinating economic activities without the need for central planning or government intervention.

CryptoKnight Fri Jan 17 2025 | 7 answers 946

I'm trying to understand the concept of opportunity cost. Specifically, I want to know what assumptions underlie this economic concept and how it affects decision-making processes.

Valeria Thu Jan 16 2025 | 7 answers 1642

I am trying to understand the concept of short run cost in economics. Could someone explain what it is and how it differs from long run cost? I'm particularly interested in how businesses operate in the short run and how their costs are structured during this period.

Giuseppe Wed Jan 15 2025 | 6 answers 1037

I'm trying to understand the concept of elasticity of cost in economics. I know it relates to how costs change in response to changes in output, but I'd like a more detailed explanation.