Marketing Dynamics
The side of the market representing the total amount of goods producers are willing to sell at various prices.
Supply
The financial reward left over after subtracting total expenses from total revenues.
Profit
The term for the value of the next-best alternative given up when making a choice.
Opportunity cost
Expenses that stay completely constant regardless of your company's production volume.
Fixed cost
The economic phenomenon where the average cost per unit drops as production volume expands.
Economies of scale
The customer's willingness and financial ability to purchase a specific good or service.
Demand
The basic economic condition where human desires are infinite but resources are finite.
Scarcity
The incremental value, satisfaction, or revenue gained from one extra unit.
Marginal benefit
Expenses that swing up or down in direct alignment with how many products you manufacture.
Variable cost
The dynamic framework where individuals, not the government, own businesses.
Capitalism
The market crossroads where quantity supplied perfectly matches quantity demanded.
Equilibrium price and Quantity
Inputs like land, labor, and capital that are combined to generate products or services.
Economic Resource
If you choose to work instead of going to a movie, the entertainment you missed is this.
Opportunity cost
The added, incremental expense generated by producing just one more unit of product.
Marginal cost
Buying raw manufacturing metals in bulk to lower unit pricing leverages this concept.
Economies of scale
This economic system relies on open markets, competition, and private ownership.
Capitalism
Items essential for direct human physical survival, like clean water and basic food.
Need
Entrepreneurs perform this step-by-step evaluation to choose the best option under scarcity.
Economic decision making
Monthly office rent and annual insurance premiums are classic examples of this cost type.
Fixed cost
This specific type of resource includes the physical factory building and tools.
Capital or Economic resource
The systematic process through which individuals evaluate alternatives to allocate their assets.
Economic decision making
Non-essential desires that improve lifestyle or comfort but are not required to survive.
Want
When a consumer decides that a movie ticket's extra enjoyment is worth its $15 price, they are weighing this specific concept.
Raw assembly materials and hourly factory labor wages fall into this category.
Variable cost
The unique factor of production that brings land, labor, and capital together to take risk.
Entrepreneurship or Economic resource