An arbitrage is when people make money by exploiting a market inconsistency.
A monopoly is a business that totally controls its market, because it has no competition and therefore customers have no other options.
Cost curves tell you whether (and how fast) a product is getting cheaper to make.
Collusion is when business collaboration becomes unfair or anticompetitive.
‘Winner take all’ is the idea that markets are becoming less competitive, and more likely to be dominated by a single company.
Opportunity cost is the ‘cost’ of having to give up something else you could be doing instead.
Inflation is when prices rise because demand exceeds supply.
Debt is when one person or company owes money to another person or company.
Commoditization is when a product is so easy and cheap to make that the price keeps dropping until almost everyone can afford it.
The Federal Reserve is the most important bank in the U.S., and the ‘banker’ for all the other banks in the U.S.
Interest rates are the cost of borrowing money.
A sunk cost is something you previously worked on that’s no longer useful.
Deflation is when prices drop because machines make things cheaper, resulting in commoditization, fewer jobs, and lower income for most people.