Economic planning
When an organisation or government chooses to initiate a construction project, they…
Validity of the Concept of Returns to Scale
We now proceed to discuss how the returns vary with the changes…
CHANGES IN SCALE AND FACTOR PROPORTIONS
Factor proportions are altered by keeping the quantity of one or some…
LAW OF VARIABLE PROPORTIONS
Law of variable proportions occupies an important place in economic theory. This…
PROPERTIES OF ISOQUANTS OR EQUAL PRODUCT CURVES
The following are the important properties of equal product curves. 1. Isoquants,…
EQUAL-PRODUCT CURVES OR ISOQUANTS
Equal-product curves are similar to the indifference curves of the theory of…
Factors determining price elasticity of Demand
The elasticity of demand depends on the following factors namely 1. Nature…
Types of price elasticity
Different products react differently to the price change. A price change for…
