This article delves into budget constraints and opportunity costs, explaining how consumers allocate limited incomes using marginal analysis and the law of diminishing marginal utility. It offers practical insights for making smarter economic decisions.

Explore the third fundamental principle of microeconomics that explains how rational individuals make decisions by comparing marginal benefits and costs. Understand its impact on consumer choices, business strategies, and market behavior.

Learn how price discrimination works under monopoly, how monopolists set different prices in segmented markets, the role of elasticity, and the impact on profits and consumer surplus. Detailed explanation with examples and graphical illustrations.