Types of Microeconomics
Club goods are nonrival and excludable. For instance, HBO is a club good, as you need to pay a monthly fee to access HBO (excludable) but more viewers does not add to costs (nonrival). Entrepreneurs are always looking for ways to turn public goods into club goods — cable TV and satellite radio being two examples.
A common good, also called common property resource, is a good that is non-excludable and rival. A good is non-excludable if you can't prevent anyone from using it, for example, a national forest or a public river.
A convenience good is an item that is widely-available and can be purchased frequently and with minimal effort, for example, newspapers and candy. A convenience good is an item that is widely-available and can be purchased frequently and with minimal effort, for example, newspapers and candy.
MONOPOLISTIC COMPETITION ECONOMIC EFFECT The economic effect of monopolistic competition is an overall undesirable loss of allocative and productive efficiency: the customer pays more and is able to buy less than in perfect competition. However, the effect is not as serious as in monopoly and the differentiated products provide a much sought diversity.
Microeconomics; AP®︎ Microeconomics; Finance & capital markets; Test prep; SAT; LSAT; MCAT; ... when you have a monopoly, something not so good is happening for ...
Definition of Monopsony. A monopsony occurs when a firm has market power in employing factors of production (e.g. labour). A monopsony means there is one buyer and many sellers. It often refers to a monopsony employer – who has market power in hiring workers. This is a similar concept to monopoly where there is one seller and many buyers.
OLIGOPOLY CONCENTRATION An oligopoly form of market is characterized by the presence of a few dominant firms. There may be a large number of small firms, but only the major firm have the power to retaliate. This results in a high concentration of the industry in only 2 to 10 firms with large market shares.
Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and resource mobility are met. Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and resource mobility are met.
A private good is the opposite of a public good. Examples of private goods include food, airplane rides and cellphones. Private goods are less likely to experience the free rider problem because a private good has to be purchased; it is not readily available for free.
Consumer products are defined as products that satisfy a consumer's wants or needs. There are four types of consumer products, and they are convenience, shopping, specialty, and unsought. Convenience products are low cost, routine, low involvement, wide target market, and easily available.
This is a complete beginner’s guide to what is microeconomics and micreconomics principles, not a beginner’s complete guide to microeconomics though it is an effort in that direction to cover as much as possible in a simple manner.
Video: Unsought Products: Definition & Examples If you have ever wondered why life insurance salespeople earn high commissions, it's because they sell unsought products. In this lesson, you'll learn about unsought products and be provided some examples. You'll also have a chance to take a short quiz.