Micro Economics

Generally, market means a place where buyers and sellers buy and sell their product. But in economics, the market has a separate meaning. In economics,…

Price discrimination refers to charging of different consumers by the monopolist. it is possible only when following conditions prevail in the market. The existence of Monopoly:…

The marginal rate of technical substitution (MRTS) can be defined as, keeping constant the total output, how much input 1 have to decrease if input…

Characteristics of perfect competitive firm – Infinite Sellers Infinite customers with the willingness and ability to buy the product at a certain price, Infinite producers…

Fixed cost are expenses that do not change in proportion to the activity of a business, within the relevant period or scale of production. For example,…

The production function simply states the quantity of output (Q) that a firm can produce as a function of the quantity of inputs to production,…

Economies of scale, in microeconomics, refers to the cost advantages that a business obtains due to expansion. There are factors that cause a producer’s average…

In economics, Production function may be defined as the functional relationship between physical inputs (i.e., factor of production) and physical outputs (i.e., the quantity of good…

Marginal productivity theory is a cornerstone in the analysis of factor markets and the input side of short run production. It provides insight into the…

The opportunity cost of any good is the next best alternative good that is sacrificed. Put another way, the benefits you could have received by…