Showing posts from July, 2017
There are several costs that a firm should consider under relevant circumstances. It is quite essential for a firm to understand the difference between various cost concepts for the purpose of production/business decision making.…
Introduction: In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production as to changing the output level by changing the capital stock or by entering or leaving an industry. T…
Introduction: Production involves the use of production factors in producing the most effective level. In addition, manufacturers also need to use the correct scale to ensure that the resulting output to fulfill the law of dimin…
Consumer’s surplus, the concept was introduced by A. J. Dupit, a French engineer in 1844. But he could not have developed it. The credit goes to Alfred Marshall for developing this concept. Marshall first named this concept as ‘c…
Introduction Price elasticity of supply (Pes) measures the relationship between change in quantity supplied and a change in price. If supply is elastic, producers can increase output without a rise in cost or a time delay If su…
Changes in quantity supplied strictly as a function of price are referred to as movement along a supply curve. A shift of the entire supply curve is referred to as a change in supply; this could be due to any factor(s) that affec…
Economics is mainly divided into two parts: 1. Microeconomics 2. Macroeconomics The brief description of Microeconomics and Macroeconomic and its concept is as follows. 1. Microeconomics The individual level of economics is k…
Price determination under perfect competition can be analyzed into three periods: 1. Very Short Period 2. Short Period 3. Long Period 1. Very Short Period: Refers to a time period in which quantity supplied of a product cannot be…
1. Price of Related Goods The supply of a product can be influenced by the price of related goods: A) Substitute goods B) Complementary goods A) Substitute Goods Supply of a product will decrease if there is an increase in th…
The relation between the quantities of a commodity supplied at a given price is shown in the supply schedule. In other words supply schedule is the tabular form of price and supply of a particular commodity for a stated period o…
We know that the law of supply states that other factors kept constant as the price increases, the quantity supplied of a commodity increases and vice versa. What if there is decrease in quantity supplied with rise in price and v…
Meaning: Supply is refers to ability and willingness to sell or produce a specific quantities of goods in a given period of time at a particular price, ceteris paribus. Ceteris paribus is a Latin phrase that means holding other …
The factors affecting demand are: 1. Price 2. Income 3. Tastes 4. Price of Related Goods 5. Consumers' Expectations 6. Number of Buyers 7. Climatic Condition 8. Level of Economic Activity 9. Miscellaneous Factors 1. …
Scarcity and choice are inseparable. Discuss Yes, scarcity and choice are inseparable. It is further cleared by the following: 1. At Consumer Level: Here scarcity is limited income and choice is using the income in such a way tha…
There are 3 basic economic concepts in relation to economics definition: 1. Scarcity The problems of economics arise because we do not have enough resources to produce everything we want. The factors of production are limited an…
A) Free Market Economy B) Centrally Planned or Command Economy C) Mixed Economy D) Islamic Economy A) Free Market Economy / Capitalist / Laissez Faire Free market economy is an economy system was operation without governm…
Production Possibility Curve is a graphical representation of alternative production possibilities facing an economy. A PPC is a graphical illustration of all combination of goods and services that can be produced in a given econ…
Factors of production are the basic resources used in the production process in order to produce economic goods and services. Economists have classified the factors of production into four groups namely: 1. Land Land is defined…
