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What are expansionary and contractionary effects?
Expansionary effect refers to the effect of raising the equilibrium level of national income. For example, an increase in government spending will have expansionary effect on the equilibrium level of national income. On the contrary, contractionary effect refers to the effect of lowering the equilibrium level of national income. For example, enhance in tax will have contractionary effect on the equilibrium level of national income.
Allocated Stock and Safety Stock Allocated stock A category of stock which ensures that current stock is set aside and not issued under the normal procedure. Safet
The Short Run versus long Run - Short-run: Period of time in which the quantities of one or more production factors cannot be changed. These inputs are called as fi
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Q. Explain about Banking Cycle? An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become
subsitution effect dominate tha income effect in which good case?
Negative profit FC + VC > R(q) MR > MC Indicates higher profit at the higher output - Question: Why is profit negative when the output is zero? - Outp
Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in
Short run equilibrium - Perfect competition: In the short-run, the perfectly competitive firm maximizes its profit by producing output where MC=MR=P. This is shown in the diag
explain main features of short run engineering cost theory
Is it possible for a firm to be both Price taker and price maker? A firm can either be a price taker or a price maker. It cannot be price maker and price taker at the similar
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