Real and Pecuniary Economies

Real and Pecuniary Economies Internal economies can be classified as Real Economies and Pecuniary Economies. Real economies arise from reduction in the physical quantity of inputs. These may be economies in (i) production (ii) marketing or salesmanship (iii)...

Concept of Indivisibility

Concept of Indivisibility A very important source of economy in a big concern arises from the use of aa indivisible factor of production. This concept  divisibility requires careful understanding. Just tbidk of a hostel kitchen. It must have a minimum equipment of...

Diseconomies of Scale

Economizes of Scale Large-scale production is not without its disadvantages. Some of these disadvantages are. Over-worked Management. A large scale producer cannot pay full attention to every detail. Costs often rise on account of the dishonesty of the employees or...

SCALE OF PRODUCTION

SCALE OF PRODUCTION The scale of production has an important bearing on the cost of production. It is the manufacturers’common experience that larger the scale of production. the lower generally is the average cost of production. That is why the entrepreneur is...

Over population An Impediment to Economic Growth

Over population  An Impediment to Economic Growth It is sometimes said that a growing population helps economic development by providing an expanding market for goods. But this is an erroneous view. Actually. over – population retards economic growth. All effort...

ECONOMIC DEVelOPMENT AND POPULATION GROWTH

ECONOMIC Development AND POPULATION GROWTH The Malthusian Theory of Populations stated in effect that if people became prosperous (especially poorer sections), population would increase. In other words. an increase in the incomes of the poor would lead to an increase...