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Showing posts with label Micro Economics. Show all posts
Showing posts with label Micro Economics. Show all posts
Contestable Markets: A Model in Perfect Competition
A contestable market occurs when there is freedom of entry and exit into the market. Thus in a contestable market, there will be low sunk costs.(Costs which ca…
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How Price and Output is determined under Oligopoly
In oligopolistic industry, there are only a few big firms which control the supply of a commodity and each firm produces a significant portion of the market. T…
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Oligopoly Market - Meaning and Causes
Oligopoly is the market organization in which there are a few or small number of firms in an industry and they produce the major share of the market. The word …
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Perfect Competition Vs Monopoly in terms for Prices and Output for Consumers
Perfect Competition: In a perfect competition, there are a large number of producers as well as buyers. Nobody controls the price of the products and most com…
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Advantages and Disadvantages of Perfect Competition
Advantages of Perfect Competition 1. They allocate resources in the most efficient way- both productively (P=MC) and allocatively efficient (P> MC) in th…
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Short Run Profit Maximisation in Perfect Competition
A perfectly competitive firm will choose to produce an output where 1. MC = MR = P 2. MC curve cuts MR from below. Mc Curve below MR means at such points Ma…
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Characteristics of Perfect Competition Market
Perfect Competition Market Perfect competition market is market in which there are a large number of buyers and sellers, buying and selling the homogenous pro…
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Market Structure
Introduction: This topic discusses all the theories about different markets. Different markets will make different decisions on the determination of quantitie…
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Concepts of Revenue
Concepts of Revenue: 1. Revenue 2. Total Revenue 3. Average Revenue 4. Marginal Revenue 5. Profit 1. Revenue: Revenue means the sale receipt of the quan…
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Relationship between Marginal Cost (MC) and Average Cost (AC)
Average Total Cost is the sum of average variable cost and average fixed cost. or we can say, average cost is equal to the total cost divided by the number of…
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All Types of Costs in Economics with Examples
There are several costs that a firm should consider under relevant circumstances. It is quite essential for a firm to understand the difference between various…
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Production Cost in Short & Long Run
Introduction: In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production as to changing the output level …
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Meaning and Definition of Production
Introduction: Production involves the use of production factors in producing the most effective level. In addition, manufacturers also need to use the correct…
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Consumer’s Surplus
Consumer’s surplus, the concept was introduced by A. J. Dupit, a French engineer in 1844. But he could not have developed it. The credit goes to Alfred Marshal…
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Price Elasticity of Supply
Introduction Price elasticity of supply (Pes) measures the relationship between change in quantity supplied and a change in price. If supply is elastic, prod…
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Factors Affecting Supply Curve Shifts
Changes in quantity supplied strictly as a function of price are referred to as movement along a supply curve. A shift of the entire supply curve is referred t…
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Difference between Microeconomics & Macroeconomics
Economics is mainly divided into two parts: 1. Microeconomics 2. Macroeconomics The brief description of Microeconomics and Macroeconomic and its concept is…
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Price Determination Under Perfect Competition
Price determination under perfect competition can be analyzed into three periods: 1. Very Short Period 2. Short Period 3. Long Period 1. Very Short Period: Ref…
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