Economics

Business economics elaborates the concepts of markets, finance etc. It is a field of applied economics which analyze the business organization.

Baumol’s Sales Maximisation Model – Revenue & Profit Maximisation

Baumol’s Sales Maximisation Model

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

MRTS In Economics-Marginal Rate of Technical Substitution| MPL, MRS

Diminishing MRTS In Economics

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