Basic Concepts

Articles on the very basic topics in economics.

A Beginner’s Guide to the Big Mac Index

Filed in Basic Concepts, Economic Basics by on November 6, 2014 0 Comments
A Beginner’s Guide to the Big Mac Index

The Big Mac index was first used by The Economist in 1986 as an informal guide to purchasing power parity (PPP). It was chosen because McDonald’s is almost present in every country in the world and the ingredients of making a Big Mac stay pretty much the same.

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Third Degree Price Discrimination Explained

Filed in Basic Concepts by on July 9, 2014 0 Comments
Third Degree Price Discrimination Explained

Third-degree price discrimination is a pricing strategy which involves a firm charging different market segments different prices for the same good.

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First Degree Price Discrimination Explained

Filed in Basic Concepts by on July 4, 2014 0 Comments
First Degree Price Discrimination Explained

First-degree price discrimination is a theoretical pricing strategy which involves a firm charging every consumer the maximum price that the individual consumer is willing to pay.

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A Beginner’s Guide to Price Discrimination

Filed in Basic Concepts by on June 24, 2014 0 Comments
A Beginner’s Guide to Price Discrimination

Price discrimination is a pricing strategy which involves a firm charging a variety of prices for the same good.

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