Points of difference between Monopoly and Perfect competition are as follows : There are large number of buyers and sellers in the perfectly competitive ...

Returns to a Variable Factor: As more and more of input is employed, all other inputs being held constant, normally marginal and average product increase ...

Monopoly equilibrium: A monopolist is in equilibrium when he produces that amount of output which yields him maximizing total profit price and equilibrium ...

Distinction between monopoly and monopolistic competition: The following are the main difference between monopoly and monopolistic competition: Monopoly ...

The sign of price elasticity of demand is negative due to inverse relationship between price and quantity. In the words of Lipsey, "Because of the negative ...

Dividend refers to that portion of the profits of a company which is allocated to the members of the company by a formal declaration in the annual general ...

Long-Run Theory of Cost. When all inputs can be varied, there is a least-cost method of producing each possible level of output. Thus, with given input ...

Limitations and defects of price mechanism: The major limitations of the price mechanism are as follows: The price mechanism is unable to cope with the ...

An indifference curve is a locus of combinations of two commodities that yield the same level of satisfaction to the consumer. In general, they are convex to ...

Economic Rent. This concept of Economic Rent was developed by Joan Robinson. It defines rent as the payment for the hire of a factor over and above the ...

Relationship Between AVC, MC, AC and MC. Where X1 → Output corresponding to minimum point of MC curve. X2 → Output corresponding ...

Marginal Productivity theory: Marginal Productivity theory is a bold attempt to explain the determination of rewards of various factors of production. It ...