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The importance of profit maximisation

We now need to investigate the role of profit as an incentive to allocate resources. As you’ve probably noticed, supply and demand movements are all motivated by the attraction of …

The law of supply

Now, we’ll define the law of supply, which states that there is a direct and positive relationship between price and quantity supplied (Mas-Colell et al., 1995, p. 138). Put another …

Continue learning with Coventry University

Thank you for joining us on this short course What is Economics in Global Logistics? We hope that you enjoyed the learning experience. This course is part of the online …

Getting the most out of your learning

As this might be your first time studying with Coventry University, we’ve put together a few tips to help you get the most out of the experience. Comments FutureLearn is …

Returning to determinants of supply and demand

External factors such as the determinants of demand and supply cause the curves to move and intersect elsewhere. This causes a change to the point of equilibrium because increases or …

The law of demand

You should now have a clear recognition of the key macroeconomic issues in the larger economy and how they affect the decision-making of staff at logistics and transport businesses. We’re …

The role of transport in economic development

One of the key measures of macroeconomics is economic growth, and logistics and transport play a key part in this. To encourage economic growth, governments need to invest in logistics …

The production possibility frontier

Another tool, which helps to explain opportunity cost, is the production possibility frontier (PPF). As well as illustrating opportunity cost, this tool helpfully highlights the trade-offs between different resources. A …

The importance of opportunity cost

In economics, there are three questions regarding scarcity: What is scarce? How do we overcome scarcity and produce more? And who is the scarce product for? Remember, there is only …

Allocating scarce resources

Hopefully, the previous discussion brought you to the conclusion that scarcity is all about the allocation of scarce resources – we don’t pay for air because it’s everywhere. In the …

What is an economy?

For the factors of production to be utilised to their fullest potential, they need to be organised into an economy. An economy consists of various markets, which are essentially a …

Supply and demand in markets

Now you understand how demand and supply behave individually, it’s time to combine them to create a market. Watch the video showing how we can combine supply and demand curves …

Different types of economies

Think about where you come from and the economy of your home country for a moment. If you grew up in a developed nation such as the UK, France, Germany …