Heterogeneity in economics

In economics, heterogeneity refers to the presence of diverse and varied characteristics or behaviors within a particular group, market, or economic system. This concept contrasts with homogeneity, where entities within a group share similar traits or properties. Heterogeneity can manifest in various forms, such as: 1. **Consumer Preferences**: Different consumers have unique preferences, incomes, and purchasing power, which affect their choices and demand for goods and services.