What is a factor market: The factor market is referred to all the business resources – land, labour, rent, wages. In the circular flow of income and expenditure economy is divided into firms and households. Where the household sector provides the factors of production to firms and it is called a factor market.
Economic Utility Definition refers to the satisfaction gained by an individual or power of a commodity that depends upon customer’s need and want. Moreover there are terms like Marginal and Total utility along with their relationship explained through table and graph represntation. further elaborating law of diminishing marginal utility.
Pricing Under Monopoly Firms And Level Of Price Discrimination Pricing under monopoly is different from the other market structure due to the single seller in the market, and it leads to many advantages when it comes to pricing. Before, we move to the concept of pricing under monopoly lets understand the meaning of monopoly market … Read more
The Law of returns to scale discusses the change and rate of change in output due to the rate of change in the input. In other words, the law of returns to scale illustrates the proportionate or percentage change in the amount of input changes the amount of output. The Law of returns to scale … Read more
Definition: Cardinal Utility approach was given by neo-classical economists, who said that satisfaction gained after using a certain commodity can be termed as Utility. Also, they assumed that cardinal utility can be measured in quantitative terms (or money), like 1,2,3,4 and so on. Meaning of Cardinal Utility: Consumers can express their satisfaction after consuming goods … Read more
Oligopoly Market Meaning Oligopoly market structure involves only a few competitors in the market and referred to as imperfect competition. In this form of market, products are homogeneous or differentiated and the number of sellers in the market are between two and ten. For instance, the cold drink industry in India selling homogeneous as well … Read more
Circular Flow Of Income And Expenditure: It a model which explains the flow of income and expenditure in the circular flow that illustrates the different sectors in an economy which reveals the different sources of their incomes and the different expenditures which they have to bear. This model is used in calculating national income, by … Read more
Monopoly Meaning In Economics: A monopoly market is where there is only a single seller in the market with no presence of substitutes. There are many reasons for which the firm gains monopoly power, such as: Government license ownership of resources copyright patent high starting cost These factors also become a restriction for new firms … Read more
Objective Baumol’s sales maximisation model has two important subheads revenue maximisation profit maximisation theory which together explains the idea behind maximising the sales. Therefore we will take a quick overview of the two concepts first which are as follows: Revenue maximisation Revenue maximisation refers to the maximising of sales in a business using various techniques … Read more
Overview MRTS in economics refers to the Marginal Rate of Technical Substitution which is termed as the slope of isoquant. Isoquants are defined almost the same as the indifference curve with few changes. As a result, we will take a quick look at isoquants before studying MRTS in economics in detail. Isoquants An isoquant is a level … Read more