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Explain about the determination of equilibria.
Determination of Equilibria:
The fourth step for studying an economic step is to make trade-off choices and find out the best one. Once specified an economic institutional arrangement, environment and other constraints, as like technical, resource, and budget constraints, individuals will react, depend onto their incentives and own behavior, and decided an outcome from between the available or feasible outcomes. This state is termed as equilibrium and the outcome an equilibrium outcome. It is the most common description an economic “equilibrium”.
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Average product and marginal product: Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable facto
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