PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
Equilibrium in tile Long-Run The long-fill is a period of time long enough tu permit changes in the variable as well as in the fixed factors. In the long run, accordingly, all fat.:tor~ arc variable and none fixed. Thus, in the lung-run, firms can change their output...
PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
Conditions of Equilibrium . Under perfect competition. as explained earlier, price for all individual finn is even. It cannot influence the price by its own action. It works under the assumption that it can sell as much as it likes, at the prevailing price. Therefore,...
PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
EQUILIBRIUM OF FIRM AND INDUSTRY UNDER PERFECT COMPETITION In the previous chapter, we have discussed in detail the conditions of equilibrium or a firm and industry, As mentioned earlier, our analysis in regard to thc equilibrium in the last general terms and nut...
PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
Utility Maximization There are economists like Denjaminlliggins, Melvin Redder and Tibor Scitovsky who say that maximization of satisfaction or utility is the over-riding consideration which governs businessman’s behaviour. This goal is also called l’rcfc...
PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
Sales Maximization The sales maximization hypothesis has been put forward by Professor 8aumol. In his view, maximization of sales rather than the maximization of profits the ultimate objective that the entrepreneur pursues. He says that sales have become an end of...
PARTIAL EQUILIBRIUM AND GENERAL EQUILIBRIUM ANALYSIS
Full Cost Pricing Principle For many years, Chamberlin ‘s and Joan Robinson’s price theory of monopolistic competition had come to be generally accepted. According to This theory, the firms were able to act atomistically on the principle of profit...
