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Author: plag free

13
Jun

Price & Output determination : Monopolistic Competition

# INTRODUCTION : As we know, under Monopolistic competition MR is not equal to AR as in case of perfect competition. So, if a firm wants to sell more units of output, it will have to lower its price per unit. That is the reason why under monopolistic competition AR and MR curves are sloping downward from left to right. A firm , under monopolistic competition reaches its equilibrium when produces up to that limit where its Marginal cost (MC) is equal to Marginal revenue (MR) and MC cuts MR from below. # EQUILIBRIUM OF FIRM UNDER MONOPOLISTIC COMPETITION : Firm’s equilibrium under monopolistic competition…

11
Jun

Understanding Monopolistic Competition – Assignment help !

# INTRODUCTION TO MONOPOLISTIC COMPETITION : We already know about the two extreme situations of market, namely perfect competition and monopoly.  But in real life, situation is the mid way between these two extremes. This is Monopolistic competition also referred as imperfect competition. Monopolistic competition is a market structure, wherein there are many sellers of a commodity, but the product of each seller is some what different from other sellers. This product differentiation manifest itself in  trade mark brand name quality differentiation OR different facilities offered For example : Firms producing different brands of tooth paste such as Colgate, cibaca, pepsodent, close-up etc are…

11
Jun

Supply ,Demand & Government intervention – Assignment help !

# INTRODUCTION : We have already studied about supply and demand analysis and how the markets tend to move toward their equilibrium prices and quantities. Price of goods will automatically adjust themselves so that quantity demanded must be equal to supply of commodity. But sometimes, in case of certain commodities the govt intervenes and fixes some price limit against the equilibrium prices. Such interventions in commodity market focuses on the following two cases : Price Ceiling Price Floor A price ceiling is the legal maximum price for a good or service, while a price floor is the legal minimum price. Although…

08
Jun

Profit Maximization Assignment help !

Profit maximization is a process by which a firm determines the price and output of a product that yield the greatest profit. A producer’s equilibrium is a situation in which he maximizes his profits and minimizes his loss. There are two methods for determination of Producer’s Equilibrium: Total Revenue and Total Cost Approach (TR-TC Approach) Marginal Revenue and Marginal Cost Approach (MR-MC Approach)   # CONCEPT OF COST : In order to produce goods, a firm uses various inputs such as raw material, land, labour, capital etc. The expenditure incurred on these inputs is known as cost of production. Any cost incurred in…

07
Jun

Supply & Demand Analysis !

INTRODUCTION : Economics is all about human behavior, concerned with allocation of scare means in such a way that consumers can maximize their satisfaction, producers can maximize their profits and society can maximize its social welfare. It is broadly classified into two parts : Micro economics Macroeconomics Microeconomics studies economic relationships or problems at an individual level whereas Macroeconomics studies economic relationships and and problem at level of economy as a whole. Despite being different branches of economics, both are interrelated to each other. SUPPLY AND DEMAND ANALYSIS : In microeconomics, supply and demand are the important determinants of market. In…

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