Marginal utility derived from the , various units of a commodity and its total utility are interrelated. The point where marginal utility becomes zero, ...

Production Possibility Curve: Production possibility curve is a curve which depicts all possible combinations of two goods which an economy can produce with ...

Government intervention can alter market outcomes in the following two ways, whereby it can influence the price at which commodities are bought and sold— ...

Price Effect: Separation of Income and Substitution Effects : A change in the price of a commodity, say X, other things remaining the same, causes a ...

Total Variable Costs (TVC) is incurred on variable factors and it varies with the level of output. If the output is zero, TVC is zero and as output increases, ...

Perfect competition is a market situation in which there area large number of buyers and sellers, firms sell a homogeneous product and there is free entry and ...

Price discrimination means selling a good to different buyers at two or more price for reasons not associated with difference in cost, goods are assumed to be ...

It refers to two prisoners namely Molly and Knuckles. They were partners in crime and imprisoned together. Now for punishment, the district attorney ...

Circumstances under which free market fail to achieve efficient allocation of resources : Market failure occurs when resources are mis allocated, or ...

International trade is necessary to obtain the gains that international specialization makes possible. Trade allows each individual, region or country to ...

Elasticity of demand differs from commodity to commodity. Not only that, elasticity of demand of the same commodity may be different for different persons. ...

Absolute Cost Difference: According to Adam smith, absolute differences in the cost of production of different goods across different countries is the ...