Inflation, Macroeconomics
One of most common yet very very important topic of Macroeconomics which is also considered to be one of the fundamental economic issue that is “INFLATION”. A general definition of Inflation is Inflation is a rise in the general Price Level Remember, Inflation is not...
Microeconomics, Perfect Competition, Profit Maximization in Short-Run
There is a very basic concept of understanding Profit maximization either for Perfect Competition or another market model. For almost all markets, the concept is similar. Total Revenue If Q is output of the firm, Total Revenue is : Total Revenue = Price x...
Microeconomics, Perfect Competition
Although this type of market does not have a real or physical existence, yet it is most importantly used for understanding the Basic Market models of Economics. Let us discuss this topic step by step: Basic Assumptions of Perfectly Competitive Markets Price taker: The...
Production, Production with Fixed Input
Why do we need to know about Average and Marginal Product ? When we are talking about Production with One variable or in other words when we a firm is producing something with the limited constraint of having a fixed variable , say Capital in the Short-Run. Also, only...
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...
