EQUILIBRIUM OF INDUSTRY UNDER PERFECT COMPETITION

• EQUILIBRIUM OF INDUSTRY UNDER PERFECT COMPETITION
• MICRO ECONOMICS
• BY DR. SHASHI AGGARWAL
• MEANING

1. INDUSTRY MEANS GROUPS OF FIRMS PRODUCING HOMOGENEOUS PRODUCTS. INDUSTRY IS IN EQUILIBRIUM WHEN IT HAS NO TENDENCY TO CHANGE
2. ACCORDING TO HANSON,” AN INDUSTRY WILL BE IN EQUILIBRIUM WHEN THERE IS NO TENDENCY FOR THE SIZE OF THE INDUSTRY TO CHANGE THAT IS WHEN NO FIRMS WISH TO LEAVE IT AND NO NEW FIRMS ARE BEING ATTRACTED TO IT.

SHORT RUN AND LONG RUN EQUILIBRIUM OF FIRM UNDER PERFECT COMPETITION

• EQUILIBRIUM OF FIRM  UNDER PERFECT COMPETITION PART 1
  
  
• MICRO ECONOMICS/BUSINESS ECONOMICS
• SHASHI AGGARWAL ECONOMICS AND LAW CLASSES
• IMPORTANT QUESTION
• EXPLAIN THE FIRM'S SHORT RUN AND LONG RUN EQUILIBIRUM UNDER PERFECT COMPETITION
• ANSWER :

1. MEANING OF PERFECT COMPEITION
2. CONDITIONS OF EQULIBRIUM IN BRIEF
3. SHORT RUN EQULIBIRUM ( SNP,NP AND MINIUM LOSSES
4. LONG RUN EQULIBIRIUM

DISCRIMINATING MONOPOLY

·         DISCRIMINATING MONOPOLY

·         MONOPOLY

·         MICRO ECONOMICS

·         BY DR. SHASHI AGGARWAL

·                 PRICE DISCRIMINATION/DISCRIMINATING MONOPOLY

1.    A MONOPOLIST OFTEN CHARGES DIFFERENT  PRICES OF THE SAME PRODUCT FROM DIFFERENT CUSTOMERS OR DIFFERENT INDUSTRIES

2.    IT IS CALLED PRICE DISCRIMINATION

3.    DISCRIMINATING MONOPOLIST ADOPTING THIS POLICY OF CHARGING DIFFERENT PRICES OF SAME PRODUCT

4.    J.S.BAINS,” PRICE DISCRIMINATION REFERS STRICTLY TO THE PRACTICE BY A SELLER TO CHARGING DIFFERENT PRICES FOR DIFFERENT BUYERS FOR THE SAME GOODS.

MONOPOLISTIC COMPETITION IN HINDI

PERFECT COMPETITION

•     PREFECT COMPETITION
MAIN FORMS OF MARKET
MICRO ECONOMICS/BUSINESS ECONOMICS

•     DR SHASHI AGGARWAL

•     MEANING

•     REFERS TO A MARKET SITUATION WHERE THERE IS LARGE NUMBER OF BUYERS AND SELLERS. THE SELLER SELL HOMOGENEOUS PRODUCT AT A UNIFORM PRICE . THE PRICE IS NOT DETERMINED BY THE FIRM BUT BY THE INDUSTRY.

•     LEFTWITCH,” PERFECT COMPETITION IS A MARKET IN WHICH THERE ARE MANY FIRMS SELLING IDENTICAL PRODUCTS WITH NO FIRM LARGE ENOUGH RELATIVE TO THE ENTIRE MARKET TO BE ABLE TO INFLUENCE MARKET PRICE.

•     MRS JOAN ROBINSON,” PERFECT COMPETTION PREVAILS WHEN THE DEMAND FOR THE OUTPUT OF EACH PRODUCER IS PERFECTLY ELASTIC.

RELATIONSHIP BETWEEN AVERAGE COST AND MARGINAL COST

• RELATIONSHIP BETWEEN AVERAGE COST AND MARGINAL COST
• MICRO ECONOMICS
• DR. SHASHI AGGARWAL
• AVERAGE COST

1. THE AVERAGE COST OF PRODUCTION IS THE  COST OF PRODUCTION PER UNIT OF OUTPUT
2. AC = TC/Q
3. AC= AFC +AVC
4. AVERAGE FIXED COST:- TFC/TQ
5. AVERAGE FIXED COST IS THE PER UNIT COST OF THE FIXED FACTOR OF PRODUCTION.

#THEORY OF #COST PART 1

THEORY OF COST PART 1

• THEORY OF COST PART 1
• MICRO ECONOMICS
• BY DR. SHASHI
• COST OF PRODUCTION
• COST OF PRODUCTION IS A FUNCTION OF OUTPUT. THE RELATION BETWEEN COST AND OUTPUT IS CALLED COST FUNCTION OR COST ANALYSIS.
• C=f(Q)
• COST OF PRODUCTION OF A COMMODITY MEANS THE PAYMENTS MADE TO THE FACTORS OF PRODUCTION.
• COST ANALYSIS IS OF TWO TYPES:-

1. TRADITIONAL APPROACH OF COST CURVES
2. MODERN APPROACH OF COST

DIFFERENCE BETWEEN SUPPLY AND STOCK

• DIFFERENCE BETWEEN SUPPLY AND STOCK

• MEANING OF SUPPLY

1. SUPPLY MEANS THE AMOUNT OFFERED FOR SALE AT GIVEN PRICE DURING CERTAIN PERIOD OF TIME
2. THOMAS,” THE SUPPLY OF GOODS IS THE QUANTITY OFFERED FOR SALE IN A GIVEN MARKET AT GIVEN TIME AT VARIOUS PRICES.

ECONOMIES OF SCALE -INTERNAL AND EXTERNAL ECONOMIES

• ECONOMIES OF SCALE
  INTERNAL AND EXTERNAL ECONOMIES
• MICRO ECONOMICS
• MEANING OF ECONOMIES
• COST ADVANTAGE THAT ENTERPRISE OBTAIN DUE TO SIZE, OUTPUT OR SCALE OF OPERATION WITH COST PER UNIT OF OUTPUT GENERALLY DECREASING WITH INCREASING SCALE AS FIXED COSTS ARE SPREAD OUT OVER MORE UNITS OF OUTPUT.
• MARSHALL DIVIDED ECONOMIES OF SCALE INTO TWO PARTS:-

1. INTERNAL ECONOMIES

LAW OF VARIABLE PROPORTIONS : THEORY OF PRODCUTION 2

•    LAW OF VARIABLE PROPORTIONS
DETAILED LECTURE
WWW.GARGSHASHI.COM

•    SHORT RUN PRODUCTION FUNCTION

•    RETURNS TO FACTOR

•    MICRO ECONOMICS

•    BY DR. SHASHI AGGARWAL

PRODUCTION FUNCTION THEORY OF PRODUCTION 1

COMPARISON BETWEEN INDIFFERENCE CURVE ANALYSIS AND UTILITY ANALYSIS

MCQ ON ECONOMICS 1 FOR NET STUDENTS/CA/CS FOUNDATION

CONSUMER EQUILIBRIUM WITH THE HELP OF INDIFFERENCE CURVE

MEANING ,ASSUMPTIONS AND PROPERTIES OF INDIFFERENCE CURVE APPROACH

• INDIFFERENCE CURVES APPROACH
• MICRO ECONOMICS/ FOR NET UGC STUDENTS/CA AND CS FOUNDATION BUSINESS ECONOMICS
• INTRODUCTION TO INDIFFERENCE CURVE

1. ALSO CALLED ORDINAL UTILITY APPROACH
2. BETTER THAN CARDINAL UTILITY APPROACH WHICH WAS BASED ON UNREALISTIC ASSUMPTIONS
3. ORDINAL UTILITY TECHNIQUES IS BASED ON COMPARABILITY OF THE UTILITIES
4. FIRST GIVEN BE EDGEWORTH AND PARETO
5. FURTHER DEVELOPED BY R.G.D ALLEN AND J.R HICKS

LAW OF EQUI MARGINAL UTILITY FOR CA AND CS FOUNDATION ECONOMICS

CRITICISM AND SIGNIFICANCE OF LAW OF DIMINISHING MARGINAL UTILITY

•    CRITICISM AND SIGNIFICANCE OF LAW OF DIMINISHING MARGINAL UTILITY
FOR CA AND CS FUNDAMENTAL ECONOMICS

CRITICISM

1. MEASUREMENT OF THE UTILITY IS NOT POSSIBLE : BUT UTILITY OR SATISFACTION REFERS TO STATE OF MIND AND IS INCAPABLE OF BEING MEASURED.
2. MARGINAL UTILITY OF MONEY DOES NOT  REMAIN CONSTANT:AS THE STOCK OF MONEY DECREASES THEN UTILITY INCREASES AND VICE VERSA

THEORY OF CONSUMER BEHAVIOR 1 FOR CA AND CS FOUNDATION BUSINESS ECONOMICS

THEORY OF CONSUMER BEHAVIOR FOR CA AND CS FOUNDATION BUSINESS ECONOMICS 1

• THEORY OF CONSUMER BEHAVIOR
  CA AND CS FOUNDATION BUSINESS ECONOMICS
• MEANING OF UTILITY
• THE UTILITY IS TO DENOTE THAT QUALITY IN A COMMODITY OR SERVICES BY VIRTUE OF WHICH OUR WANTS ARE SATISFIED
• WANT SATISFYING POWER OF A GOOD IS CALLED UTILITY.
• ACCORDING HIBBDON,” UTILITY IS THE QUALITY OF A GOOD TO SATISFY A WANT.
• MRS ROBINSON,” UTILITY IS THE QUALITY IN COMMODITY THAT MAKES INDIVIDUAL WANT TO BUY THEM.