Pricing Strategies
Pricing is the process of determining what a company will receive in exchange for its product or service. A business can use a variety of pricing strategies when selling a…
Monopolistic Competition
Monopolistic competition is a form of market structure in which a large number of independent firms are supplying products that are slightly differentiated from the point of view of buyers.…
Market Structure & Pricing Decisions
Price determination is one of the most crucial aspects in economics. Business managers are expected to make perfect decisions based on their knowledge and judgment. Since every economic activity in…
Contribution and Breakeven Analysis
Break-even analysis is a very important aspect of business plan. It helps the business in determining the cost structure and the amount of sales to be done to earn profits.…
Economies and Diseconomies of Scale
Economies of Scale As the production increases, efficiency of production also increases. The advantages of large scale production that result in lower unit costs are the reason for the economies…
Types of Costs
All the costs faced by companies/ business organizations can be categorized into two main types − Fixed costsVariable costs Fixed costs are expenses that have to be paid by a company,…
Cost Concepts
Costs play a very important role in managerial decisions especially when a selection between alternative courses of action is required. It helps in specifying various alternatives in terms of their…
Isoquants
Isoquants are a geometric representation of the production function. The same level of output can be produced by various combinations of factor inputs. The locus of all possible combinations is…
Law of Variable Proportions
The law of variable proportions has following three different phases − Returns to a FactorReturns to a ScaleIsoquants In this section, we will learn more on each of them. Returns…
Theory of Production
In economics, production theory explains the principles in which the business has to take decisions on how much of each commodity it sells and how much it produces and also…
