Cost, Economics of Scope, Microeconomics
Economics of Scope A condition in which a combined output of a Single Unit/Firm can produce more than Two different firms which produces the same product. There are valid possibilities of such firms which has Economics of Scope. For Example: Automobile Production...
Microeconomics, Production, Production with Fixed Input
After the basic concept of Production Function and Production Decision. We now move on to Production techniques with one variable or you can also name it as Production Techniques in the Short-Run. One of the Most basic Example of Inputs of Production used is the...
Income and Substitution Effect, Microeconomics, Network Externality
Tell me at the first instance how can you comprehend the Work NETWORK EXTERNALITY ? By Network, we mean Individuals. And Externality is a cost or benefit that is incurred not on your choice. In Economics, Network Externality is a case when people’s demand is dependent...
Giffen Good, Income and Substitution Effect, Microeconomics
The Giffen Good is although a rare case yet still has valid possibilities. By definition: Giffen Good is a special case where the Demand Curve Slopes Upward because the Income effect is greater than the Substitution Effect In this case, the Income effect is...
Microeconomics, Production, Production Decision
Originally written at Mba-tutorials Now we have demand side of the market and the supply side. From the word supply we do understand very easily that we are going to discuss about the or examine the behavior of Producers. We will see how firms can produce...
Microeconomics, Production
Originally posted in Mba-tutorials A production function indicates the highest output Y that a firm can produce for specific combination of input. We have many factors of production used as inputs but for simplicity we will focus only on labor and capital as a factor...
Income and Substitution Effect, Microeconomics
Income and Substitution Effects Let us assume there is a decrease in the price of a product. This will have two effects: Consumer will prefer buying more of that good because it has become cheaper and he/she will decrease the demand for those goods which are now...
Income and Substitution Effect, Microeconomics, Price Consumption Curve
We have been discussing about Demand curve of product with changes in its price and Quantity Demanded depending on different Situation. Let us now be more concerned about Individual Consumer Demand Curve whose decision are affected by the limited budget it has....
Demand and Supply, Market Equilibrium, Microeconomics
From our last Lectures we now do know that Equilibrium prices are determined by the relative level of supply and demand. And that changes in supply and/or demand will cause change in the equilibrium price and/or quantity in a free market. Let us provide some example...
