About This Chapter
Consumers, Producers & Market Efficiency - Chapter Summary
This chapter can help you brush up consumers, producers, and market efficiency. You'll look at resource markets, economies of scale, the law of diminishing marginal returns, and other important microeconomics topics. These short lessons each only cover a single major concept, so you can quickly review just those topics you need to work on. You can study these lessons in any order, and you can go back as often as necessary. All of our materials stream online 24/7, giving you the access to study from practically any location, day or night. When you finish this chapter, you will be prepared to:
- Define and discuss how consumers contribute to microeconomics
- Share the roles of producers and consumers in a resource market
- Detail consumer surplus and producer surplus
- Differentiate between the individual demand curve and the market demand curve
- Establish the theory of marginal utility and point out the related formula
- Evaluate the principle of diminishing marginal utility and provide examples
- Elaborate on the economics assumptions concerning the maximization of utility
1. Who Is the Consumer in Microeconomics?
Who is the consumer in microeconomics? In this lesson, you will learn the definition of a consumer and the microeconomic assumption that explains their decision-making process.
2. Roles of Consumers & Producers in a Resource Market
When you go to the store, you are a consumer. However, did you know that chances are you've been a producer as well? This lesson explains how roles are reversed in resource markets.
3. Consumer Surplus: Definition, Formula & Examples
In this lesson, we will explore the meaning of consumer surplus and how we engage and create it in our day to day purchasing decisions. The formula and examples provided will further demonstrate how it is calculated and what drives it.
4. Producer Surplus: Definition, Formula & Example
In this lesson, we'll explore the concept of producer surplus. By defining what it means, learning the formula, and looking at examples, we'll gain a better understanding of producer surplus.
5. Resource Market: Definition & Overview
Businesses cannot provide goods or services if they don't have resources. In this lesson, you'll learn about the resource market and related concepts.
6. What Are Economies of Scale? - Definition & Impact on Fixed Costs
People talk often about the importance of 'economies of scale,' but what does that even mean? This lesson explains that concept, as well as the impact that economies of scale have on both fixed costs and marginal costs.
7. Understanding the Individual Demand Curve
Want to see how economics affects the decisions you make on a daily basis? This lesson on the individual demand curve helps to explain why we fall for marked-down holiday candy.
8. Factors that Affect the Market Demand Curve
Just like any other demand curve, there are a number of factors that can affect the market demand curve. This lesson introduces many of them and explains how difficult it can be in real life to actually measure equilibrium.
9. What is Marginal Utility? - Definition, Theory, Formula & Example
Utility is an essential economic concept that explains the satisfaction in consumption. This lesson explains marginal utility, how it is calculated, and its usefulness. Then you'll be able to test your newfound knowledge with a quiz.
10. Diminishing Marginal Utility: Definition, Principle & Examples
Diminishing marginal utility is an important concept in economics and helps explain consumer demand. In this lesson, we will explore this topic, look at some real-world examples, and end with a quiz.
11. The Law of Diminishing Marginal Returns
Ever wonder what keeps us from eating nothing but our favorite foods? Or how we determine in what order to request different goods? Much of that comes down to the law of diminishing marginal returns, which proves there is too much of a good thing.
12. Economics Assumptions about the Maximization of Utility
What can we assume about producers wanting to maximize utility? For starters, we must assume that they want to maximize utility! This lesson explains why that is so important and how producers do it.
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Other chapters within the TECEP Microeconomics: Study Guide & Test Prep course
- Basic Economic Concepts
- Supply & Demand in Microeconomics
- Taxation in Microeconomics
- International Trade in Microeconomics
- Public Sector Economics
- Costs in Economics
- Market Structures
- Profit & Capital Allocation
- Labor Market Economics
- Theories & Trends in Microeconomics
- TECEP Microeconomics Flashcards