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Intended or planned Investment
Expenditure on investment depends on business expectations on the chance of making profits and on the availability of funds for the purchase of producer goods. Although business expectations re complex in nature, a rough approximation is that the expectations on profits rise or fall in direct response to movements in the GNP this year increases businessmen expect an increase in planned consumption expenditures, and hence profits to increase next year.
Tastes of the buyer must not alter Any alteration which takes place in the taste of consumers will in all probability thwart the working of the law of demand. It frequently hap
Problem: (a) Explain with the help of a diagram, the effect on a consumer's equilibrium, of an increase in the price of commodity X while the consumer's money income and price
Problem : (a) Describe inflation and discuss its origin using Classical and Keynesian theories. (b) Describe with diagram how can inflation occur in an economy with substant
Illustrate the application of economic theory to some business problems
Intended or planned Investment Expenditure on investment depends on business expectations on the chance of making profits and on the availability of funds for the purchase of p
assumptions and limitations
Direct control and Moral Suasion Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restr
When is production profitable according to price-taking firm at profit, break-even or loss? Production profitable at profit, break-even or loss: a. When TR > TC, in that cas
What are the limitations of managerial economics
Q. Define Profit maximisation theory? Profit maximisation theory defines that firms (corporations orcompanies) will establish factories where they see potential to achieve the
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