Tag: knowledgesharing
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What do we understand by “want” in economics? In economics, the term “want” refers to a wish, desire, or motive to own or/and use goods and services that give satisfaction. Want may arise due to physical, psychological, or social factors. We must choose between our urgent wants and our less urgent wants because resources are…
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Total Outlay Method of calculating price elasticity: The total expenditure or outlay made on it and the price elasticity of demand for that commodity are significantly related to each other. We can say that the price elasticity and total revenue received are closely related to one another because the total expenditure (price of the commodity…
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Doctors! We never think about them until we are in pain. They treat us and mend us, and we thank the gods. On this doctor’s day, let us take time to appreciate some beautiful souls, the doctors. The first ever Doctors Day was celebrated on the 1st of July, 1991. It’s been two decades and…
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Business economics is an area of applied economics that examines business enterprises, the variables influencing the variety of organizational structures, and the interactions between businesses and the labor, capital, and product markets using economic theory and quantitative tools. Similar to how people go through different stages of life, practically every firm goes through several stages…
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Small tools but, important sometimes: View this post on Instagram A post shared by Sarcasm (@sarcastic_us) View this post on Instagram A post shared by Small Important Things (@smallimportantthings) View this post on Instagram A post shared by Small Important Things (@smallimportantthings) View this post on Instagram A post shared by MeRaKi 🌻 (@lovejib1)
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High Renaissance Italian polymath who worked as an artist, draughtsman, engineer, scientist, theorist, sculptor, and architect. He created a hydraulic pump and gave the Duke of Milan a mobile bridge. Da Vinci was an ambidextrous, paranoid dyslexic who could sketch with one hand while writing with the other, creating a mirror image script that was…
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Production Optimization: Generally, a profit-maximizing firm wants to determine which combination of factors of production (or inputs) would minimize its cost of production for a given output. This can be known by combining the firm’s production and cost functions, namely isoquants and iso-cost lines, respectively. Let us understand what we mean by isoquants. Isoquants: An…
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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…