Circular Flow Of Income And Expenditure

Circular Flow Of Income And Expenditure

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

Monopoly Meaning In Economics

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

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