Partial Equilibrium Approach

Economics Assignment Help Online

Partial Equilibrium Approach  In the partial equilibrium approach to pricing, we explain price determination of a single commodity, keeping the prices of other commodities.  We assume that the prices 01 various commodities are independent of one another and do not mutually affect one another. Marshall explains this approach thus, forces to be dealt with are however, so numerous […]

Price Determination: General Statement

Economics Assignment Help Online

Price Determination: General Statement  Before Marshall, there was a dispute among economists on whether the force of demand (i.e., marginal utility) or the force of supply (i.e., cost of production) is more important in determining price. Marshall gave equal importance to both the demand (or marginal utility) and supply (or cost of production) in the determination of the value or […]

PRICE-OUTPUT DETERMINATION UNDER MONOPOLY

Economics Assignment Help Online

PRICE-OUTPUT DETERMINATION UNDER MONOPOLY Price-output is ab” all allal flf the equilibrium or the firm and industry . Since in a monopoly, a single firm constitutes the whole industry, there is no need for a separate analysis of the equilibrium of thc firm and of thc industry, as is done in case of perfect competition. Also, the price-output quillu ium of the fire […]

Equating Marginal Revenue and Marginal Cost

Economics Assignment Help Online

Equating Marginal Revenue and Marginal Cost 111e aun of the monopolist. like every other producer. i. to maximize his total money profits. Therefore, hc will produce up to a point and charge a price which glue huu thc maxi ilium profiteroles. In other words, he will he in equilibrium at that price-output Level at which his profits are the maximum. lie […]

DETERMINATION OF SHORT-RUN PRICE

Economics Assignment Help Online

DETERMINATION OF SHORT-RUN PRICE In a preceding chapter, we explained that in the short-run a firm is in equilibrium at the output at which price equals marginal cost. It was also pointed out that, during the short-run, fixed costs arc disregarded in making a decision whether to produce or not. It is the average variable cost rather than average total cost which […]

Price as a Rationing Device

Economics Assignment Help Online

Price as a Rationing Device  We shall discuss more fully later the role of price in a modern economy. We may only say here that price is a signal to the producers to expand or contract production and a warning to the consumers as to the possible shortage of the commodity or signal to the possible glut. Also, price reflects […]

Long-run Normal Price i ll Increasing Cost Industry

Economics Assignment Help Online

Long-run Normal Price i ll Increasing Cost Industry As we explained in the previous chapter, supply curve of an increasing-cost industry slopes upwards from left to right. This is so because when a full-sized industry expands as a result of the increased demand for its product, it experiences certain external economics and diseconomies. But external dis economies in the case of an […]

Long-run Normal Price in Decreasing Cost

Economics Assignment Help Online

Long-run Normal Price in Decreasing Cost  As already pointed out in the preceding chapter, in the case or ;1 young industry in its early stages of growth, the external economics may overweigh the external diseconomies, This phenomenon of net external economics lowers the Cost curves Ill’ all firms. The external economics, which may be available when the industry grows ill size. arise […]

DTRM NATION OF LONG-RUN NORMAL PRICE

Economics Assignment Help Online

DTRM NATION OF LONG-RUN NORMAL PRICE Market price may fluctuate owing to a sudden change either on the side of supply or on that of demand.big arrival (If fish, for instance. may depress its price in a particular market. A sudden heat wave may raise the price of ice are, however, temporary influences and cause temporary disturbances in the market price. […]

MARGINAL UTILITYOF MONEY INCOME

Economics Assignment Help Online

MARGINAL UTILITY OF MONEY INCOME Marshall assumed that the law of diminishing marginal utility applied to money too. But the recent view is that it docs not, It is said that the marginal utility or money rises and rails depending on the level of income as is shown by the people taking to gambling and insurance. In this connection, the following hypotheses may be […]