Tag: economics
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Meaning The mathematical relationship between the cost of a product and various determinants of costs is referred to as a cost function. The dependent variable in a cost function is unit cost or total cost, while the independent variables are the price of a factor, the size of the output or capacity utilization, or any…
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“Cost is a fundamental notion in economics.” It refers to the sum of money paid to get products and services. To put it another way, cost is a financial assessment of the resources, materials, hazards, time, and utilities consumed to acquire goods and services. Cost principles and interrelationships: Optimal input utilization and production. A farmer’s…
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Law of Variable Proportions or Law of Diminishing Returns: Before understanding The Law of Variable proportions or Law Of Diminishing Returns we need to understand a few concepts: Concept 1 : Total product: when we talk about total product, what exactly do we mean by total product? It is the total output resulting from the…
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MEANING : It refers to inputs. Let us understand what we mean by inputs. An input is a good or service which a firm buys for its use in its production process. Production process consists of various processes such as Changing in the form of natural resources ( eg. changing the form of log of…
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We often look in the past and wonder how they lived without technological advancements? We often become nostalgic about our lives as children and compare them to the current world. Childhood is a stage in life between infancy and youth. The experiences the kids have in their childhood years make them. People often see changes…
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MEANING OF PRODUCTION; What do you understand by production in common parlance? Well, the simple answer would be the term production is an activity of making something material. The following are the few examples of production: Growing of wheat, rice or any other agricultural crop by farmers.Manufacturing of cement, radio sets, wool machinery or any…
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Demand forecasting can be at the national or international level. Thus, the scope of forecasting tasks will depend upon the area of operation of the firm in the present as well as what is proposed in future. Demand forecasting can also be confined to a given product or service supplied by a small firm in…
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DEMAND FORECASTING Forecasting of demand is an art and science of predicting the probable demand for a product or service at some future date on the basis of certain past behaviour patterns of some related events and prevailing trends in the present. BASICS Forecast means to predict. So what is demand forecasting? It is forecasting…
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Table of Contents:MIXED ECONOMYFEATURES OF MIXED ECONOMYCO-EXISTENCE OF PRIVATE AND PUBLIC SECTORPRIVATE SECTORPUBLIC SECTORCOMBINED SECTORMIXED ECONOMY HAS THE FOLLOWING MERITS AVAILABLE TO CAPITALIST AND SOCIALIST ECONOMYFACTSCONCLUSIVE STATEMENT The mixed economic system depends on both markets and governments in allocation of resources. Every economy in the real world makes use of markets and governments and is…
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Table of Contents SOCIALIST ECONOMY CHARACTERISTICS OF SOCIALIST ECONOMY COLLECTIVE OWNERSHIP ECONOMIC PLANNING ABSENCE OF CONSUMER CHOICE RELATIVELY EQUAL INCOME DISTRIBUTION MINIMUM ROLE OF PRICE MECHANISM OR MARKET FORCES ABSENCE OF COMPETITION MERITS OF SOCIALIST ECONOMY DEMERITS OF SOCIALIST ECONOMY CONCLUSIVE STATEMENT Characteristics of Socialist Economy: Key Characteristics of a Socialist Economy Collective Ownership Economic…