In economics a “price taker” is defined as a small individual or firm that is not able to affect the prices of goods individually.

We are price takers. Even if we go now to the local grocery store and one million tomatoes, the price of tomatoes in the market won’t be affected.

Not being a price taker [...]

One of the assumptions that economists use very often is the “diminishing returns to scale” assumption, which means that each additional worker in your factory (keeping constant the number of machines) helps to increase your output but in a smaller amount that the worker that joined before him. For instance, if you have a guitar [...]

I’m not a native English speaker (as many of you that read my grammatical mistakes in this blog from time to time might notice), but I think I can explain the difference between Signs and Signals and what do I mean when I mention those in this post.

While Signs is what you probably already know [...]