Production function
In economics, Production function may be defined as the functional relationship between physical inputs (i.e., factor of production) and physical outputs (i.e., the quantity of good…
Economics
The Marginal Productivity theory of wages with criticism
Marginal productivity theory is a cornerstone in the analysis of factor markets and the input side of short run production. It provides insight into the…
What is opportunity cost?
The opportunity cost of any good is the next best alternative good that is sacrificed. Put another way, the benefits you could have received by…
The concept of consumer surplus
Consumer surplus is defined as the difference between the consumers’ willingness to pay for a commodity and the actual price paid by them or the…
Consumer’s surplus by using indifference curve
Consumer’s Surplus is one of the most important concepts in Economics. It was expounded by Alfred Marshall. It needs careful study. In our daily expenditure,…
Engle Curve
The Engle Curve tracks the consumption of a Good X as an individual’s income changes. Income is plotted on the x-axis and the quantity of Good X…
Utility and Marginal Utility
The problem of fulfilling the unlimited wants of humankind with limited or scarce resources. Because of scarcity, economies need to allocate their resources efficiently. Underlying the…
Opportunity cost
Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs, and trade-offs result in an opportunity cost. While the cost…
What is indifference curve?
When a consumer consumes various goods and services, then there are some combinations, which give him exactly the same total satisfaction. The graphical representation of…
U-shaped cost curves
The U-shapes of the average total cost, average variable cost, and marginal cost curves are directly or indirectly the result of increasing marginal returns for…
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