Meaning of Stable Equilibrium If any small disturbances take place forces come into play to re-establishes in the initial position is called stable equilibrium. It means after any fluctuations either in the price or quantity supplied or demanded if these market forces again come back or move back to the original equilibrium position then such […]
Stability of Equilibrium Read More »
For an individual person, equilibrium is said to be attained by him or her when he or she assumed or recognized his or her concrete performance or behavior as the possible most excellent under the given conditions and he or she does not feel beneficial to change his or her actions and in such case, this excellent situation is called equilibrium.
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The basic economic problems and their nature can be explained with the help of a diagram named the production possibility curve(PPC). Since the resources are limited, demand and things to be produced are unlimited. So society has to decide about the goods to produce: wheat, cloth, roads, electrical goods, etc. After deciding the nature of
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Economics is the study of the economic behavior of individuals concerning scarcity and choices. Economic interaction takes among people when they exchange goods within the framework such as firms, government, or the economy. The broader institutional framework in which or within which economic interactions take place in a country is known as the economy.
Major Economic Systems Read More »
Meaning of Equilibrium The term equilibrium is defined as states in which at least two different opposite forces or powers are equal. Thus, equilibrium means a state of balance. Concerning the market, equilibrium is the position in which market demand for a commodity is exactly equal to the market supply of that commodity. This equality
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Profit maximization is one of the most important assumptions of economic theory. In economics, it is always assumed that a firm’s rationality is the maximization of profit. It means, rational producer or entrepreneur always attempts for profit maximization. Thus profit maximization constitutes a central and crucial concept in the theory of the firm.
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Resources are scarce and they have alternative usages so that there arises the problem of choice regarding the use of these resources. This scarcity has always been with us and will be with us till eternity. Scarcity occurs among poor people as well as among rich people. It applies to everyone and every nation because there will never be enough of everyone that people want to have.
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Meaning of Microeconomics Generally, the subject matter of economics is broadly divided into two main branches. They are microeconomics and macroeconomics. These two words become everyday words nowadays. Microeconomic analysis and macroeconomic analysis are now considered two important approaches to economic analysis. The terms ‘micro’ and ‘macro’ were first used in economics by Norwegian economist
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The term profit in economics differs from that generally used by the business community. A business profit is an accounting profit or accounting concept of profit and presents the residual sales revenue to the owners of the business firms after making payments to all purchased factors or resources used by the firm belonging to other persons.
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Scientific research refers to the process of conducting research. It means the research which is conducted with some scientific characteristics is called scientific research. Scientific research is not any special type of research nut it is different than general research. Any research can be scientific research if it has followed the scientific attributes.
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