The production function provides information about the quantity of factor inputs as to the result of the quantity of outputs and this is measured by total product; average...
The costs and revenues of a firm determine its nature and the levels of profit. The revenue concepts commonly used in economic are total revenue, average revenue and marginal revenue...
Marshall’s materialist definition of economics was unable to convince Lionel Robbins. Therefore, Robbins attempted to define economics in a better sense in his book...
There are three types of equilibrium, namely stable, neutral and unstable equilibrium. Prof. Schumpeter explains the three positions with a simple illustration of a ball placed in three different...
Methods of measuring price elasticity of demand - The percentage elasticity method - Total outlay elasticity method - Point or geometrical elasticity method - Arc elasticity method
Economic Organization is the act of coordinating the other factors of production – land, labor and capital. Organization performs a very important function in modern production...
In the process of business expansion, producers may benefit from the emergence of economies of scale. These economies are broadly classified into two types: Internal Economies and External Economies.
Gossen, a German economist, is the first to explain the law of diminishing marginal utility based on general observations of human behavior. Therefore, the law is also termed as ‘Gossen’s first law’.
The law of diminishing returns is one of the most eminent concepts in the theory of production function. The modern version of the law of diminishing returns is known as law of variable proportions...
Monopoly means absence of competition. Monopolist is the sole seller of a commodity. Under monopoly, the price of a good is determined by the interaction of supply and demand, but in a different way..
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