ME/U4 Topic 2 Price and Output Decisions under different Market – Perfect Competition, Monopoly and Monopolistic Competition, Oligopoly
Price determination is one of the most crucial aspects in economics. Business managers are expected to make perfect decisions based on their knowledge and judgment. Since every economic activity in […]
Cost Concept: Various Cost Concepts and Classification
According to the Chartered Institute of Management Accountants, cost is “the amount of expenditure (actual or notional) incurred on or attributable to a specified thing or activity.” Similarly, according to […]
Cost Output Relationship in Short Run & Long Run Cost Curves
Cost Output Relationship in Short Run Time element plays an important role in price determination of a firm. During short period two types of factors are employed. One is fixed […]
Economics and Diseconomies of Scale
Economies of Scale Economies of scale are defined as the cost advantages that an organization can achieve by expanding its production in the long run. In other words, these are […]
Cost Control and Cost Reduction
One of the major concern of the enterprise is to maximize the profit, which is possible only through decreasing the cost of production. For this purpose, two efficient tools are […]
Meaning and definition of business essentials
Business denotes busi-ness, that is the state of being busy – any activity in which one keeps himself busy. But the economic term of business refers to work, efforts, and […]
Theories of factor pricing
Factors of production can be defined as inputs used for producing goods or services with the aim to make economic profit. In economics, there are four main factors of production, […]
Factor pricing v/s Product pricing
1. In the product (consumer goods) market, the consumers or the households are the buyers and the firms are the sellers. In this market, the buyers aim at maximising utility […]
Theories of Rent
David Ricardo, an English classical economist, first developed a theory in 1817 to explain the origin and nature of economic rent. Ricardo used the economic and rent to analyse a […]
Theories of interest
1. Productivity Theory: According to productivity theory, interest can be defined as a reward for availing the services of capital for the production purpose. Labor that is having good amount […]
Theories of Wages
The workers are paid wages or salaries for the work done by them. Thus, the return to the workers should be according to their efforts and the pay standards prevailing […]
Theories of Profit
Theory1. Rent Theory of Profit: This theory was first propounded by the American Economist Walker. It is based on the ideas of Senior and J.S. Mill. According to Mill, “the […]
Concept of Profit Maximization
In the neo-classical theory of the firm, the main objective of a business firm is profit maximization. The firm maximizes its profits when it satisfies the two rules. MC = […]
Market Analysis: Nature of market
When we talk about a market we generally visualize a crowded place with a lot of consumers and a few shops. People are buying various goods like groceries, clothing, electronics, etc. And […]
Types of markets and their characteristics
A variety of market structures will characterize an economy. Such market structures essentially refer to the degree of competition in a market. There are other determinants of market structures such […]
Demand Analysis Concept and importance of Demand
Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time. The relationship between price and quantity […]
