Microeconomics

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Abnormal Profit
Microeconomics Market Structure
Profit above normal profit after both explicit and implicit costs are taken into account.
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Abuse of Dominant Position
Market Structure Microeconomics
Anticompetitive conduct by a firm with substantial market power that harms competition rather than merely outperforming rivals.
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Accounting Profit
Accounting Microeconomics
Profit measured under accounting rules after subtracting explicit recorded costs from revenue.
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Adjustment Costs
Microeconomics Macroeconomics
Costs that make firms or households change prices, employment, investment, or other decisions gradually instead of instantly.
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Administered Price
Microeconomics Public Finance
A price set or strongly shaped by a government, regulator, or dominant institution rather than left to market clearing alone.
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Adoption
Microeconomics Development Economics
The decision by firms, households, or governments to start using a new technology, product, or practice.
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Advantage
International Economics Microeconomics
In economics, advantage usually refers to absolute advantage or comparative advantage in production, trade, or specialization.
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Adverse Selection
Microeconomics
A problem caused by hidden information before a transaction, where the riskiest or lowest-quality participants are most likely to accept the offered terms.
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Advertising
Microeconomics Market Structure
Paid communication used by firms to inform, persuade, and influence demand, competition, and product differentiation.
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After-Sales Service
Microeconomics Market Structure
Support, repairs, warranties, and spare-parts access that shape the full economic value of a product after purchase.
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Agency Cost
Corporate Finance Microeconomics
The cost created when agents do not perfectly act in the principal's interest and resources must be spent on incentives, monitoring, and control.
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Agency Problem
Microeconomics Corporate Finance
The problem that arises when a principal delegates decisions to an agent whose incentives or information differ from the principal's.
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Agency Theory
Microeconomics Corporate Finance
A framework for analyzing how contracts, incentives, and monitoring can align an agent's behavior with a principal's goals under imperfect information.
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Agglomeration Economies
Microeconomics Development Economics
Productivity and cost advantages that arise when firms and workers cluster geographically.
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Allais Paradox
Behavioral Economics Microeconomics
A famous violation of expected utility theory in which people treat certainty differently from nearby high probabilities.
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Altruism
Behavioral Economics Microeconomics
Preferences that place positive weight on other people's well-being, affecting giving, cooperation, and public-goods provision.
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Ambiguity
Behavioral Economics Microeconomics
A situation where outcomes may be known but the probabilities attached to them are not reliably pinned down.
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Anti-Competitive Practice
Market Structure Microeconomics
Conduct that weakens rivalry and allows firms to raise price, lower quality, or block entry.
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Antitrust
Market Structure Microeconomics
Competition policy that targets cartels, exclusionary conduct, and mergers that harm market rivalry.
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Applied Microeconomics
Microeconomics Econometrics
The use of microeconomic theory and data to answer real-world questions about households, firms, and policy.
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Arc Elasticity
Microeconomics Statistics
An average elasticity measured between two points using the midpoint formula.
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Arrow-Debreu Economy
Microeconomics Economics
A general-equilibrium model with complete contingent-commodity markets.
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Assembly Line
Microeconomics
A production system where a product moves through sequential workstations, enabling specialization and high throughput.
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Asymmetric Information
Microeconomics Economics
A situation in which one side of a transaction knows more relevant information than the other.
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Auction
Microeconomics Market Structure
A market mechanism in which price and allocation are determined through bids.
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Auctioneer
Microeconomics Market Structure
The person or institution that runs an auction and enforces its bidding rules.
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Average Cost
Microeconomics Economics
Total cost per unit of output.
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Avoidable Cost
Microeconomics Economics
A cost that disappears if a product, activity, or decision is not undertaken.
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Axioms of Preference
Microeconomics Economics
Basic assumptions used to describe rational preferences in consumer theory.
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Backward Induction
Microeconomics
A method for solving sequential games or decisions by analyzing from the final stage back to the first.
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Backward Integration
Market Structure Microeconomics
Expansion by a firm into the production or control of its own inputs.
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Backward-Bending Supply Curve
Labor Economics Microeconomics
A labor supply curve that slopes up at lower wages but bends backward at higher wages as income effects outweigh substitution effects.
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Bargaining
Microeconomics Labor Economics
A process in which parties negotiate over how to divide gains from exchange or cooperation.
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Bargaining Power
Labor Economics Microeconomics
The ability of a party in negotiation to secure a larger share of the gains from agreement.
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Barriers to Entry
Market Structure Microeconomics
Obstacles that make it costly or difficult for new firms to enter a market.
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Barriers to Exit
Market Structure Microeconomics
Obstacles that make it costly or difficult for firms to leave a market.
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Barter
Economics Microeconomics
Direct exchange of goods or services without using money as the payment medium.
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Barter Economy
Economics Microeconomics
An economy in which exchange takes place through direct trade rather than through money.
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Batch Production
Economics Microeconomics
Batch production means making goods in groups or runs rather than as a continuous flow or as one-off custom output.
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Battle of the Sexes
Economics Microeconomics
A coordination game in which both players prefer coordinating to mismatching, but each prefers a different coordinated outcome.
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Behavioural Theories of the Firm
Behavioral Economics Microeconomics
Behavioural theories of the firm explain firms as organizations with bounded rationality, routines, and multiple internal objectives rather than as single profit-maximizing calculators.
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Benefits
Microeconomics Public Finance
Benefits are the gains in utility, willingness to pay, or welfare created by consuming a good, taking an action, or adopting a policy.
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Bergson-Samuelson Social Welfare Function
Economics Microeconomics
The Bergson-Samuelson social welfare function represents social welfare as a function of individual utilities, making value judgments explicit.
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Bertrand Competition
Market Structure Microeconomics
Bertrand competition is a model in which firms compete by setting prices rather than quantities.
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Bilateral Monopoly
Market Structure Microeconomics
A bilateral monopoly is a market with one seller and one buyer, so price and quantity are determined by bargaining rather than by competitive market forces alone.
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Black Market
Microeconomics Economics
A black market is an illegal market in which goods or services are traded outside official rules, often at prices different from the legal price.
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Costs
Microeconomics
In economics, the value of resources used (including opportunity cost) to produce a good, service, or outcome.
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Economic Efficiency
Microeconomics Economics
A condition where resources are allocated to maximize total welfare given technology and constraints.
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Expenditure Function
Microeconomics
The minimum spending needed to reach a given utility level at given prices.
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Household
Microeconomics Personal Finance
The basic decision-making unit for consumption, saving, and labor supply in microeconomics and macroeconomics.
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Marshallian Demand
Microeconomics
Ordinary (uncompensated) demand: the utility-maximizing bundle as a function of prices and income.
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Minimax
Microeconomics Risk Management
A decision rule that chooses the action that minimizes the worst-case (maximum) loss; central in zero-sum game theory.
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Nash Equilibrium
Microeconomics Market Structure
A strategic outcome where each player's choice is a best response to the choices of others.
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Pricing
Microeconomics Market Structure
How prices are set in markets and by firms, and how costs, demand, and market structure shape the result.
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Producer Good
Microeconomics Macroeconomics
A good intended for use as a capital good or intermediate product by producers, rather than for direct use by consumers.
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