Economics

Law of Substitution The law of substitution is also known as the law of equi-marginal utility or the law of maximum satisfaction. This law was…

The law of substitution has several limitations as follows: The law of substitution is also known as the law of equi-marginal utility or the law…

Importance of the Law of Substitution The law of substitution is also known as the law of equi-marginal utility or the law of maximum satisfaction.…

Inflation is a phenomenon of continuous rise in the general price level of goods and services. Inflation is not a rise in the prices of…

Gross Domestic Product Gross Domestic Product (GDP) is a measure of income or output produced in an economy in a specified period of time. It…

Factor Affecting Supply:  Supply shocks Supply shocks, the events that were not anticipated by firms, like natural disasters, sudden changes in weather, wars, transportation strikes,…

TRANSACTION COST Transaction costs are the costs of arranging contracts or transaction agreements between demanders and suppliers, and it also includes shipping and handling costs.…

Industry is the sector of the economy concerned with the production of goods and services. Industry has 4 sectors… Primary Secondary Tertiary Quaternary Major businesses…

Gross National Product (GNP) The total value of all final goods and services produced within a nation in a particular year, plus income earned by…

Gross Domestic Product (GDP) Gross Domestic Product is the market value of all officially recognized final goods and services produced within a country in a…

Perfect Market competition In economic theory, perfect/pure competition describes markets such that no participants are large enough to have the market power to set the…

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. The Monopoly is a market structure characterized by a single seller,…