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Q. Explain about Capacity Utilization?
Capacity Utilization: A company or economy's capacity represents maximum amount of output it can produce. Rate of capacity utilization, hence, represents proportion of capacity which is actually used in production. When capacity utilization is high (so that a facility is being used fully or near-fully), pressure grows for new investment to expand that capacity. Additionally, high capacity utilization tends to reduce the unit cost of production (Because capital assets are being used more efficiently and fully).
Supply of a commodity is functionally related to its price. The law of supply rated to this function relationship between price of a commodity and its supply. In contrast to the in
Change in demand: change in quantity demanded occurs when the consumption of a commodity increases or decreases as a result a change in the price of the commodity, when all ot
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The Efficiency of a Competitive Market *? When an competitive markets generate an inefficient allocation of the resources or market failure? 1) Externalities Costs
What is opportunity cost? Answer: Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity foregone (and the advantages that co
This is the practice of maximizing profits and revenues and minimizing costs, using marginal analysis.
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Discuss whether inflation or deflation is the more serious problem for an economy. Inflation is a consistent general enhance in the price level, whereas deflation is a consiste
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