Discuss various concepts of National Income
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national…
Discuss the shape of Kinked demand curve.
“Kinked” demand curves are similar to traditional demand curves, as they are downwardsloping. They are distinguished by a hypothesized convex bend with a discontinuity at the bend– “kink”. Thus the…
Discuss the characteristics of oligopoly
Characteristics of oligopoly.Profit maximization conditions: An oligopoly maximizes profits by producing where marginal revenue equals marginal costs.Ability to set price: Oligopolies are price setters rather than price takers.Entry and exit: Barriers to entry…
What do you mean by monopolistic competition
In a monopolistic market a large number of sellers or producers sell differentiated products.It differs from perfect competition that the products sold by different firms are not identical. that is…
What are the sources of monopoly
Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede a potential competitor’s entry into the market or ability to compete in the market.There…
What do you mean by Monopoly
Features of monopolySingle seller: In a monopoly there is one seller of the good who produces all the output therefore, the whole market is being served by a single firm, and…
What do you mean by consumer surplus
Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay…
Explain firms and its types, objectives and goals
Firm is an organization owned by one or jointly by a few or many people, engaged in a productive activity, with a definite aim.Types of firms Private sector:The ownership is…
Briefly explain basic economical concepts with the applications
The basic/fundamental economic concepts are:i. Incremental conceptii. Discounting conceptiii. Time perspectiveiv. Opportunity costv. Equimarginal conceptIncremental analysis refers to changes in cost and revenue due to a policy change. For example –…
What is business environment
Managerial Decisions/ Decision Analysis is the Process of selecting the best out of alternative opportunities, open to the firm.To arrive at a business decision, the four main phases are:1. Determine…