Business Economics

Introduction If you’re running a business, it’s important to understand marginal costs. What are they? How can you use them to your advantage? In this article, we’ll answer those questions and more. We’ll start by explaining what marginal costs are and how they’re calculated. Then we’ll show you how to use them in your business […]

Production is a crucial economic activity because it improves the utility of a product by transforming it into the form required by the consumer. Leather, for example, is less commonly utilised in its raw state until it is converted into attractive products such as shoes, bags, and other accessories. To an economist, production refers to

Introduction In economics, the notion of cost and producer equilibrium is addressed by the Law of Production. It is an essential part of economics since it assists a company in determining the amount of output that will result in the highest profits. It also specifies the firm’s numerous variable and fixed costs. The two laws

At the core of the microeconomic model of determining market price, lies the law of supply and demand. It is important to understand these two concepts at the onset. Through the law of supply, we can understand what factors work behind the supply of a particular product at a particular point of time in the

Business economics is a unique branch of applied economics and it is used mainly in the fields of quantitative methods as well as economic theory. Business economics also has a diverse range of sub-topics in economic theory and business management. It looks at different kinds of business enterprises, analyses the various contributing factors that make

What is Income Elasticity of Demand? In simple language, income elasticity of demand refers to the behaviour of a demand for a particular commodity concerning the changes in the consumer’s income.  The sensitivity ratio among the quantity of a given commodity and the subsequent changes in the income of the consumers who are demanding the

Introduction The term “fixed cost” refers to the expenses a company has to pay regardless of its business activities. This cost is constant and doesn’t change with increasing or decreasing revenue, change in the number of services offered, or change in the amount of sales. This is evident from the above-mentioned facts that fixed costs

Every economy requires business activities for it to      flourish      and develop     . Sometimes these business activities are booming due to favorable circumstances and the economic indicators like employment, demand, investment, etc. are optimistic. But at some point in time, the business activity may not bring very good returns  

Factors of production are a vital concept in economics. It is defined as the particular inputs that are highly needed for producing services and goods. The factors that are generally considered include entrepreneurship, capital, labor, and land. These four basic factors involve resources that are highly needed for the creation of services and goods and

Using the concept of Elasticity of supply, we can demonstrate the statistical change in supply concerning the change in the price of a good or service. It should be noted that Elasticity can also be determined concerning the other supply determinants. The price of a commodity is the most important element controlling its supply. As