Micro Economics

Product Differentiation

The process of distinguishing a product from others to make it more attractive to a target market.

Oligopoly

A market structure in which a few large firms dominate the market.

Allocative Efficiency

A situation in which resources are distributed in such a way that maximizes consumer satisfaction.

Productive Efficiency

A situation in which a firm produces at the lowest possible cost.

Monopolistic Competition

A type of market structure where many firms sell products that are similar but not identical.

Natural Monopoly

A type of monopoly that exists due to the high fixed or startup costs of operating a business in a particular industry.

Marginal Revenue

The additional revenue that will be generated by increasing product sales by one unit.

Nash Equilibrium

A situation in a non-cooperative game where each player is making the best decision they can, taking into account the decisions of the other players.

Dominant Strategy

A strategy that is best for a player, no matter what the strategies chosen by the other players.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the individual firms.