Introduction to Inflation: Meaning, Impact, Causes, and Effects
Inflation means a steep increase in prices, resulting in a decrease in the value of money over a period of time…
Economics
Social Audit: Meaning, Objectives, and Methods
What is Social Audit? The term ‘social audit’ may be explained in several ways. As far as common understanding goes, it is an important assessment of how well a company has discharged its social obligations. However, experts see it as a systematic and comprehensive evaluation of a company’s social performance’ which is explained as a
Business Cycle: Definitions, Characteristics, Stages, Types, Control
What is Business Cycle? Business cycles are a type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises. The cycle consists of expansions occurring at about the same time in many economic activities followed by similarly general recessions, contractions and revivals which merge into the expansion
Price and Output Determination Under Monopoly: Short Period, Long Period
What is Meaning Monopoly Structure? A monopoly is a market structure where there is a single seller/producer of a commodity or service. One firm one industry, restrictions on the entry of the firms in the industry, profit motive are some of the characteristics of the market. There are three situations: Profit, loss and normal profit
Price and Output Determination Under Perfect Competition and Imperfect Competition
How is price and output determined under perfect competition? Perfect competition refers to a market situation where there are a large number of buyers and sellers dealing in homogenous products. Under perfect competition, there are no legal, social, or technological barriers to the entry or exit of organizations. Sellers and buyers are fully aware of
Role of Time Element in Price Determination
Who gave the concept of time element in price determination? Professor Marshall has explained the importance role of time elements in price determination. The supply of a commodity cannot be adjusted to the quantity demanded because time is the most important constraint. The scale of production, size of firm, supply of raw material and other
General Theory of Price Determination
In an open competitive market, it is the interaction between demand and supply that tends to determine price and quantity. This can be shown by bringing together demand and supply. Theory of Price Determination It can be shown by the following schedule: Determination of Price S.No Price (Rs.) Demand (Units) Supply (Units) 1. 1 60
Market: Definition, Features, Classification
What is Market? A market refers to a place where buyers and sellers are physically present to purchase and sell goods and services for a price. But in economics, the market is a comprehensive term and there is no particular place where the buyers and sellers are physically present. Buyers and sellers are scattered and
Cost Output Relationship in Long Run
A long period is that period in which the producer can make all required changes in each factor of production.
Cost Output Relationship in Short Run: Total Costs, Total Fixed Cost, Total Variable Costs, Average Costs
Cost and output are closely related because they affect each other. Time element plays an important role in the price determination of a firm’s cost.