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..
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...
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 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...
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...
Meaning of price effect, income effect and substitution effect - Separation of income effect and substitution effect of a price change - Slutsky's method - Hicks' method
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’.
In ordinary language, “market” refers to a place where commodities are bought and sold. However, in economics, “market” has no place but for a particular commodity which is being bought and...
Methods of measuring price elasticity of demand - The percentage elasticity method - Total outlay elasticity method - Point or geometrical elasticity method - Arc elasticity method
Quick summary of how international trade affects a domestic competitive market.
Not finding what you're looking for? Browse other articles about Economics.