Definitions

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House price latest

House prices up by 6.9%.

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Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

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Marginal cost

Marginal cost is the additional cost incurred in the production of one more unit of a good or service. It is derived from the variable cost of production, given that fixed costs do not change as output changes, hence no additional fixed cost is incurred in producing another unit of a good or service once production has already started.

Marginal cost is significant in economic theory because a profit maximising firm will produce up to the point where marginal cost (MC) equals marginal revenue (MR).

profit maximisation image

Also, a firm’s supply curve is effectively the part of the MC curve above average variable costs (from point B upwards, on the diagram below). A firm will not supply below this point as it will not be covering its opportunity cost. Point B is also known as shut-down point. Point A represents break-even point.

Marginal cost image

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Alternative finance

Report on the growth of alternative finance.

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GDP latest

UK grows by 0.3% in 1st quarter of 2017.

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Customs unions

Costs and benefits of customs unions.

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New materials

Multiple choice papers for Paper Three.

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Brexit update

Article 50

What trading options are available to the UK?

Savings ratio

Savings ratio falls to lowest level on record.

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Tax avoidance

Double Irish - and a Dutch Sandwich more..

The OECD presents its final package for reform of international tax rules..more

OECD - reducing income inequality will boost growth..more