COST AND COST CURVES

COST AND COST CURVES CONCEPT OF COST OF PRODUCTION The cost of production of an individual firm operating in a market has an important influence on the market supply of a commodity. It is vcry necessary 10 have a clear . idea about the concept of cost production and...

Alternative, Opportunity or Transfer Costs

Alternative, Opportunity or Transfer Costs In modem economic analysis, the term real cost is interpreted in the sense of opportunity cost or transfer cost. The American economist Davenport explains this concept as follows: “Suppose. for example. that a child has...

Significance of Opportunity Costs.

Significance of Opportunity Costs. There are competing demands (depending upon the marginal utility of the consumers) for the same resources. Since the resources are scarce, certain demands are satisfied only at the sacrifice of other demands. The resources . tend to...

Application of Opportunity Cost Doctrine

Application of Opportunity Cost Doctrine The opportunity cost doctrine has a wide application in the field of economic theory. It applies to the dctc reunion of values both internally and internationally. It also applies to income distribution. Lin citation». There...

Role Of Price Machanism

Role Of Price Mechanism While we cannot ignore the various criticisms leveled against the price systell ami some of them arc reasonably valid, we have to concede that the Sanctioning of the price system is conducive to economic efficiency. i.c.. efficient allocation...

FUNCTIONS OF THE PRICE SYSTEM

FUNCTIONS OF THE PRICE SYSTEM The price system function such a manner that the adjustments in the System  take place almost automatically without and direction oror dictation from a central authority, Pnce IS the coordinator both of production and COli umption....