New Trade Theory
by New trade theory (NTT) suggests that a critical factor in determining international patterns of trade are the very substantial economies of scale and network effects that can …
Tag: Microeconomics
Absolute advantage Theory
The theory of absolute advantage was put forward by Adam Smith who argued that different countries enjoyed absolute advantage in the production of some goods …
Law of carriage of Goods
The globalization of various markets, international economic integration, removal of barriers in business & trade and increased competition has significantly increased the dependency of business …
Estimating Demand Curves: Estimating Linear and Power Demand Curves
Estimating Demand Curves: Estimating Linear and Power Demand Curves
Concept of Marginal Efficiency of Investment, Features
The Marginal Efficiency of Investment (MEI) is a concept in macroeconomics introduced by John Maynard Keynes, which measures the expected rate of return on an …
Relation between Leakages and Injections in Circular Flow
Relation between Leakages and Injections in Circular Flow
Law of Price
The law of price is the economic theory that states the price of an identical security, commodity or asset traded anywhere should have the same …
Competitive Equilibrium
Competitive equilibrium is a condition in which profit-maximizing producers and utility-maximizing consumers in competitive markets with freely determined prices arrive at an equilibrium price. At …
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 …
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, …
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