Factor Pricing: Meaning, Factors of Production
The theory of distribution or the theory of factor pricing deals with the determination of the share prices of four factors of production, viz., land, labour, capital and organization.
Economics
Business Economics: Definition, Characteristics, Scope, Nature, Importance, Difference
What is Business Economics? Business Economics, also called Managerial Economics, is the application of economic theory and methodology to business. Business involves decision-making. Decision-making means the process of selecting one out of two or more alternative courses of action. The question of choice arises because the basic resources such as capital, land, labour, and management
Welfare Economics: Pigovian Welfare Economics
What is Welfare Economics? Welfare economics is the study of how the allocation of resources and goods affects social welfare. This relates directly to the study of economic efficiency and income distribution, as well as how these two factors affect the overall well-being of people in the economy. Welfare economics is normative in nature. By
What is Profit Function? Fixed and Variable Factors
What is Profit Function? The profit function represents the maximum profit a firm may earn for various combinations of inputs and output prices. Before deriving such a function, you must be aware of the concepts of profit maximisation, both in the long run and in the short run. This in turn will require your clear
Monopolistic Competition: Characteristics, Features, Equilibrium Under
Monopolistic competition is a market structure that lies between the extreme cases of competition and monopoly. Competition and monopoly lie at opposite ends of the market spectrum. Perfect competition and monopoly are rarely found in the real world and thus they do not represent the actual market situation.
Assumptions of Perfect Competition
What is Perfect Competition? Perfect competition refers to a market situation in which there are a large number of buyers and sellers of homogeneous products. The price of the product is determined by industry with the forces of demand and supply. For instance, if we require a pen there should be several shops selling pens.
Perfect Competition: Features, Characteristics
What is Perfect Competition? Perfect competition is an uncommon phenomenon in the real business world. However, the actual market that approximates the conditions of perfectly competitive models includes share markets, securities and bond markets and local vegetable markets and agricultural product markets etc. Although the form of market is an uncommon phenomenon, the perfectly competitive
Microeconomics and Macroeconomics: Importance, Features, Difference
What is Microeconomics? Microeconomics is the study of the economic actions of individuals and small groups of individuals. Thus microeconomics may be defined as that branch of economic analysis that studies the economic behaviour of the individual unit a person, a household or a firm. Definition of Microeconomics When economic problems or economic issues are
What are Decision Making Statements in C? Types
What are Decision Making Statements in C? At times, it so happens that the computer may not execute all statements while solving problems. Some statements may be executed in a situation, while they may not be executed in another situation. The computer has to take the required decision in this respect. For this, we have