KEYNESIAN ANALYSIS

KEYNESIAN ANALYSIS We shall now briefly summarise the Keynesian analysis regarding the relationship between wages and employment as under:  (1) In the first place, Keynes agreed with the classical  economists that other things being equal, employment varied inversely...

When Price Discrimination is Possible

When Price Discrimination is Possible I already mentioned, a monopolist can practise price discrimination by dividing his market into submarket and charging different prices in the monopolist can keep these sub-narke absolutely separate. According to Pigou, there are...

Capital output Ratio

Capital output Ratio Capital-output Ratio meaning. Apart from the ratio of tion to the aggregate national income the r  output depend upon the couple outpct  capital-output ratio may be defined as the relationship of investment JO a given cc n my or in  given time I...

Conclusion

Conclusion We may thus conclude that perfectly competitive  markets are con distant with the  attainment of maximum social welfare On the other hand monopoly monopolistic competition and oligopoly do not promote social welfare because of some inherent  ...

Marginal Social Productivity Criterio

Marginal Social Productivity Criterion A more general criterion of indictment proposed is that of social marginal productive  According to this criterion. those investments should be made in which social marginal productivity is the highest. Those who advocate social...

Monopolistic Competition

Monopolistic Competition Under monopolistic competition, efficient all nation of resources is not possible as under perfect  competition .. Under monopolistic competition. the demand curve is not tangential to the average cost  survey  at its lowest or optimum point....