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Q. What is Marketing Economies?
They are allied with selling of the product of the firm. They arise from advertising economies. Because advertising expenses increase less than proportionately with the increase in output, advertising costs per unit of output falls as the output increases. In the same way sales promotion expenditures such as samples, salesmen force etc. also increase less than proportionately with output. Moreover a large firm can have special arrangements with exclusive dealers to sustain a good service department for the product of the firm. Therefore the average selling costs fall with increase in the size of the firm.
Thinking about modifications in the model again: Go back to the original model again, but add a marginal propensity to invest, this is, suppose that I = f ( i and Y). The MPI is d
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critically analysis the profit maximisation theory of business firm and illucidet the role of profit in business
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Equilibrium in a two commodity market Let us consider a two-commodity market model in which the two commodities are related to each other. Let us assume the functions for bot
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