BIM Economics Note

Major Properties of the Cobb-Douglas Production Function

In this article, we explain the major properties of the Cobb-Douglas production function Introduction to Cobb Douglas Production Function The Cobb-Douglas production function is an empirical production function developed by Charles W. Cobb (American Mathematician) and Paul H. Douglas (American Economist) based on empirical studies of various manufacturing industries of the USA. This production function […]

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Macroeconomics and Business Environment

This article explains the relationship between macroeconomics and the business environment Macroeconomics and Business Environment Macroeconomics is the study of relationships and behavior of aggregate economic variables such as national income, the total level of employment, total consumption, investment and saving, aggregate demand, aggregate supply, general price level, trade cycle, etc. The values and changes in

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The Laws of Returns to Scale

Introduction The laws of returns to scale explain the input-output relationship under the condition that both the inputs (labor and capital) are variable and their quantity increases proportionately (by same size or proportion) and simultaneously.  When both the inputs labor and capital are increased proportionately, the scale or volume of production also increases. So, the

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