Objectives of a Business Firm a Perfect Competition
by Profit Maximization In the conventional theory of the firm, the principal objective of a business firm is profit maximization. Under the assumptions of given tastes …
Tag: Supply
Comparison between Perfect Competition and Monopoly
The distinction between monopoly and perfect competition is only a difference of degree and not of kind. Difference Output and Price Under perfect competition price …
Economic Regions and Optimum Factor Combination
Economic Regions The economic region of production shows the combinations of factors at a certain cost that make economic sense. Areas outside the economic region …
Cross Elasticity of Demand, Needs, Types, Factors affecting, Example
Cross Elasticity of Demand, Needs, Types, Factors affecting, Example
Income Elasticity of Demand
The elasticity of demand measures how factors such as price and income affect the demand for a product. The income elasticity of demand measures how …
Basic problems of an economy working of Price Mechanism-1
What to Produce and in What Quantities? The first central problem of an economy is to decide what goods and services are to be produced …
Law of Diminishing Marginal Utility, Assumptions, Limitations, Importance
Law of Diminishing Marginal Utility, Assumptions, Limitations, Importance
Managerial Economics and relationship with other Disciplines
Many new subjects have evolved in recent years due to the interaction among basic disciplines. While there are many such new subjects in natural and …
Absolute cost Theory
Adam Smith is generally ignored as a trade theorist in text books of international economics because of the common belief that he only confirmed the …
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