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Ask QuestionPosted by Rishab Pal 7 years ago
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Posted by Roop Bains 7 years ago
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Posted by Raveena Purohit 7 years ago
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Mohit Sharma Mohit Sharma 7 years ago
Priyanka Sachdeva 7 years ago
Posted by Dev Sharma 7 years ago
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Gaurav Seth 7 years ago
The main reason for this ‘U’ shaped AC curve is the operation of the law of variable proportion. We know as output increases, law of increasing return operates in the initial stages.
At this stage, when a firm increases its output, it gets economies and the result is decline in Average Cost. After the point of optimum combination, economies turn into diseconomies and result in increase in output and Average Cost. This is the stage of law of diminishing returns.
Posted by Xyz Abcd 7 years ago
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Gaurav Seth 7 years ago
TC and TVC curves are parallel to each other because the vertical gap between them represents TFC which remains constant at all levels of output.
Posted by Bhavya Barwal 7 years ago
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Rishab Pal 7 years ago
Posted by Arpita Upadhyay 7 years ago
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Gaurav Seth 7 years ago
The marginal revenue (MR) of a firm is defined as the increase in total revenue for a unit increase in the firm’s output.
While, Total Cost refers to the total cost of production that is incurred by a firm in the short run to carry out the
production of goods and services. It is the aggregate of expenditure incurred on fixed factors as well as variable factors.
Total cost can be derived by summing up Marginal cost at all the levels of output.
The main points of relationship between TC and MC are:
1. Marginal cost is the addition to total cost, when one more unit of output is produced. MC is calculated as: MCn = TCn –TCn-1
2. When TC rises at a diminishing rate, MC declines.
3. When the rate of increase in TC stops diminishing, MC is at its minimum point.
4. When the rate of increase in total cost starts rising, the marginal cost is increasing.
Yogita Ingle 7 years ago
Relationship between Total Cost and Marginal Cost are:
(i) When MC is diminishing, TC increases at a diminishing rate.
(ii) When MC is rising, TC increases at an increasing rate.
(iii) When MC is constant, TC increases at a constant rate.
Posted by Satender Yadav 7 years ago
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Posted by Satender Yadav 7 years ago
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Posted by Rohan Dahiya 7 years ago
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Gaurav Seth 7 years ago
Marginal physical product (MPP) is the change in the level of output due to a change in the level of variable input.
Posted by Aadith.S Aadith. S 7 years ago
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Posted by Khushi K 7 years ago
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Posted by Pardeep Rao Shab 7 years ago
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Kumar Abhinav 7 years ago
Gaurav Seth 7 years ago
<i>A production possibility frontier (PPF) / production possibility curve (PPC) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.</i><a href="https://qph.fs.quoracdn.net/main-qimg-9cc993c06dbb28fc0f0c18b4267722db" mobile_app_target="external"></a>
Government's Make in India campaign aims at transforming the country into a global manufacturing hub and has already made a "tremendous" impact on the investment climate as evidenced by the growth in Foreign Direct Investment (FDI).
So, when investments increases by make in india campaign, it will make PPC shift rightward as production will increase. It represents economic growth.
Economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier (PPF).<a href="https://qph.fs.quoracdn.net/main-qimg-f3f13297be1c76f46e5a5b2ab78bf4e9" mobile_app_target="external">
</a>
Posted by Riya Jain 7 years ago
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Posted by Riya Jain 7 years ago
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Posted by Pooja Goyal 7 years ago
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Posted by Syed Khabib 7 years ago
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Syed Khabib 7 years ago
Yogita Ingle 7 years ago
Elasticity of Demand: The degree of responsiveness of demand to the changes in determinants of demand (Price of the commodity, Income of a Consumer, Price of related commodity) is known as elasticity of Demand. The degree of responsiveness of demand to change in income of consumer is known as income elasticity of demand. The degree of responsiveness of demand to change in the price of related goods (substitute goods, complementary goods) is known as cross elasticity of demand.
Posted by Syed Khabib 7 years ago
- 2 answers
Syed Khabib 7 years ago
Posted by Krishan Kumar 7 years ago
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Mili Sharma 7 years ago
Posted by Abhinav Tyagi 7 years ago
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Yogita Ingle 7 years ago
a. Population levels: Countries with small populations may not produce in the same way as countries whit larger populations although they have the same resources or level of income. The country with a low level population would have a lower “level of well- being” than the country with a high level of population.
b. The distribution of income: GDP data give the information on the average level of income. If there is an income disparity, it would not be reflected in the “level of well- being” of the country.
c. The amount of production that takes place outside of markets: GDP data only includes economic activity that enters the market place so if you work at your house, or as voluntary in a community project, this is not reported, so it would not be included in the GDP data. Therefore, the GDP data will measure only market activity and underestimate the “level of well-being” in that economy.
d. The length of the average workweek: When people work less, GDP levels will be lower.
e. The level of environmental pollution: A high-level of environment pollution would have a really impact on the well-being of any country. A country with a lower level of environment pollution would be better than a country with high level of environmental pollution. If the country has a lower GDP and less environmental pollution, this country may be better than the country with a higher GDP and a high environmental pollution.
Posted by Taranveer Singh 7 years ago
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Posted by Taranveer Singh 7 years ago
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Posted by Taranveer Singh 7 years ago
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Taranveer Singh 7 years ago
Jay Dev 7 years ago
Taranveer Singh 7 years ago
Jay Dev 7 years ago
Posted by Taranveer Singh 7 years ago
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Yogita Ingle 7 years ago
It refers to the creation of demand deposits with the commercial banks on the basis of their cash reserves. Often the deposits are created many times more than the cash reserves. This is based on the historical experience of the banks that cash withdrawal of funds is only a small percentage of the total demand deposits.
e.g. if against the cash reserves of Rs 100, demand deposit of Rs 1000 is created, it is called credit creation by a multiple of 10 or 10 is treated as
credit multiplier which is equal to 1/LRR.
Posted by Taranveer Singh 7 years ago
- 3 answers
Jay Dev 7 years ago
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Rishab Pal 7 years ago
0Thank You