Factors Affecting Optimum Size of the Firm
The six main factors responsible for determining the size of the firm are as follows: Entrepreneurial Skill The most important factor of comes is the skill, initiative and resourcefulness of […]
Perfect Competition
Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a “commodity” or “homogeneous”). All […]
Aspects of Non-Price Competition
Non-price competition refers to competition between companies that focuses on benefits, extra services, good workmanship, product quality – plus all other features and measures that do not involve altering prices. […]
Oligopolistic Behavior
The word Oligopoly is derived from two Greek words – ‘Oligi’ meaning ‘few’ and ‘Polein’ meaning ‘to sell’. An Oligopoly market situation is also called ‘competition among the few’. In […]
Characteristics of Various Factors of Production
The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. The factors of production are land, labor, […]
Marginal productivity theory
In the words of J.B. Clark, “Under static conditions, every factor including entrepreneur would get a remuneration equal to marginal product.” As per Mark Blaug, “The marginal productivity theory contends […]
Modern Theory of Distribution
The Modern theory of factor pricing provides a satisfactory explanation of the problem of distribution. It is known as the demand and supply theory of distribution. According to the modem […]
Determination of Rent
According to modern economists, rent is considered as the payment made against the use of land by a tenant. They explained the concept of rent with respect to demand and […]
Quasi Rent
The concept of quasi-rent was given by Alfred Marshall. He defined quasi rent as surplus earnings generated by the factors of production, except land. The earnings from machines and instruments […]
