Explain briefly the law of Returns to Scale.
Introduction: Long run behavior of a firm is explained in terms of returns to scale that is the change in output as a result of change in all the inputs, proportion of input remains constant…
Explain the types of utility.
Meaning: Utility is a concept used in economics, philosophy, and other disciplines to describe the satisfaction or benefit derived from consuming goods and services or making choices. It is a measure of satisfaction of an…
What is Production? Explain the types of Production.
Meaning: Production involves the use of various inputs or factors services to produce output. In economics production means transformation of inputs into outputs, in other words production is a process of changing the form of…
Explain the consumers equilibrium under indifferent analysis under indifferent curve.
Introduction: The basic objective of the consumer is to drive highest level of satisfaction of a given amount of money in order to achieve this objective; he will spend his limited income in combination of…
Explain the determinants of Supply.
Introduction: In the ordinary language or term supply and stock conveys the same meaning but in economics the term supply is different from that of stock. Supply has all the attributes of demand a seller…
Explain the exceptions of law of supply.
Introduction: The law of supply is just opposite of the law of demand where a producer supply more units of a commodity at higher prices and supply less at a lower price given the cost…
What is elasticity of supply? explain the degrees of elasticity of supply.
Introduction: In the ordinary language or term supply and stock conveys the same meaning but in economics the term supply is different from that of stock. The term supply refers to the amount of commodity…
What is elasticity of demand? Explain its types.
Meaning: Elasticity of demand is generally defines as the responsiveness or sensitiveness of demand to a given change in the price of commodity. According to Boulding elasticity of demand measure the responsiveness of demand to…
Write a note on extension and contraction in demand.
Changes in Demand: Changes in demand in economics refer to shifts in the quantity of a good or service that consumers are willing and able to purchase at various prices. These changes can occur due…
Explain the determinants of demand?
Introduction: The term demand is different from desire, want; wish etc. In economics the concept demand has different meaning. Any want or desire will not constitute demand. Demand refers to the total or a given…