What is Cost Concept? Cost and output analysis is related to the production function, factor prices and efficiency of the entrepreneur. Various Cost Concepts have been propounded by different managers, economists and accountants. Production function explains the inputs and the resultant output relationship through which an Individual takes a decision regarding the production and tries
What is Production Function? Production is a process of transforming tangible and intangible inputs into goods or services. Raw materials, land, labour and capital are the tangible inputs, whereas ideas, information and knowledge are the intangible inputs. These inputs are also known as factors of production. For an organisation, the four major factors of production
Supply is the total quantity of a commodity that a seller would be willing to produce and sell at a given price, during a given period of time.
Demand means the various quantities of goods that would be purchased per time period at different prices in a given market.
Consumers surplus is the economic gain accruing to a consumer (or consumers) when they engage in trade
iness economists are the persons who perform jobs in context to identify various problems that are uplifting a company, find out various reasons behind these problems, analyze their effects on the functioning of the company and finally suggest rational alternative and corrective measures to be taken by the management.
A curve showing different combinations of two commodities giving the same level of satisfaction to the consumer is called the indifference curve.
The Law of Diminishing Marginal Utility is based on the assumption that as a consumer consumes more and more units of a commodity, its severity of want declines, due to this, the marginal utility derived from the commodity also declines.
ility analysis, a subset of consumer demand theory, provides insight into an understanding of market demand and forms a cornerstone of modern microeconomics.
What is National Income? A national income estimate measures the volume of commodities and services turned out during a given period counted without duplication. In other words, Is defined as the total market value of all the final goods and services produced in an economy in a given period of time. Thus it measures the monetary value