Important Economics Concepts Every Businessman Should Know, Number 3: Elasticity

In my last Clare Associates blog post, I looked at aggregate demand curves and aggregate supply curves. We know that for a given product, demand is higher if the price is lower and supply is higher if the price is higher, and how in a competitive market, the market price will tend to the intersection… Continue reading Important Economics Concepts Every Businessman Should Know, Number 3: Elasticity

Important Economics Concepts Every Businessman Should Know, Number 2: Supply and Demand

  For many years now, I’ve spent a fair amount of time in local school sixth forms (helping to run this). One thing that surprises me about schools today is how few of them teach economics. While it’s true that you don’t need an economics degree to run a business, some of the theory will… Continue reading Important Economics Concepts Every Businessman Should Know, Number 2: Supply and Demand

Opportunity Cost, Part Three of Three – Why This Matters In Business

This is the third in a series of articles on Opportunity Cost and why it matters in business. Part One Part Two   Opportunity cost is one of the most important concepts in all of economics. If you understand it, you can start to see the world in a slightly different way. It’s also one… Continue reading Opportunity Cost, Part Three of Three – Why This Matters In Business

Opportunity Cost Part Two

If you didn’t see the first post on opportunity cost, you need to read that first. It is here.   For those of you who have read that post, let’s continue…   If you remember, in part 1 of this article, I asked you to consider this scenario: You’ve just won a ticket to see… Continue reading Opportunity Cost Part Two

Important Economics Concepts Every Businessman Should Know, Number 1: Opportunity Cost

Let’s say you pay your office cleaners £20 to clean the office each night. You could actually clean the entire office yourself and you wouldn’t have to pay anyone £20, just a few quid on cleaning consumables, dusters etc. Now you know that the reason you don’t is because it would take you a couple of hours to do… Continue reading Important Economics Concepts Every Businessman Should Know, Number 1: Opportunity Cost