Uses of Conjoint Analysis
by Conjoint analyses can break-down large number of attributes into smaller bundles for evaluations and comparison. There attributes can also be compared in pairs: Respondents can …
Tag: Economic Optimization
Utility Approach
It is a measure of satisfaction an individual gets from the consumption of the commodities. In other words, it is a measurement of usefulness that …
Indifference Curve Approach
Marshall’s demand analysis is based on the cardinal measurement of utility. The approach is criticised for two reasons. (i) Utility is a psychological phenomenon and …
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 …
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 …
Selling Costs
Selling costs play the key role in monopolistic competition and oligopoly. Under these market forms, the firms have to compete to promote their sale by …
Classical Models of Oligopoly
Cournot’s Duopoly Model Cournot founded the theory of duopoly. His duopoly model consists of two firms marketing a homogenous good. Cournot uses the example of …
Collusive Oligopoly
When there is product differentiation, i.e., differentiated oligopÂoly, two or few sellers may recognise that their prices are closely interreÂlated. Since each firm is a …
Equi-Marginal Principal, Elements, Formula, Example, Importance
Equi-Marginal Principle (also known as the principle of equal marginal utility or the law of equi-marginal utility) is a fundamental concept in economics that helps …
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