Law Of Diminishing Returns
ECONOMICS

LAW OF DIMINISHING RETURNS | DEFINITION & ASSUMPTIONS

Law of Diminishing Returns; Whether on Crusoe’s island or Manhattan Island, production involves the use of labor, land, and capital. These resources may be combined in different proportions. Which proportion to use in producing a given output is one of the decisions confronting the manager of the firm, whether he be Robinson Crusoe or the […]

Meaning of Market
ECONOMICS

DEFINITION & MEANING OF MARKET IN ECONOMICS | MARKET

Meaning of Market?¬†We have deliberately refrained from defining the term “market.” It should be apparent that it too is an elusive concept. The economist uses the word “market” to describe the process of exchange. It is, however, a process that always involves the following elements: “a good or service (or some group of goods or […]

Meaning of Competition
ECONOMICS

WHAT IS COMPETITION | DEFINITION & MEANING OF COMPETITION

Meaning of Competition? Competition as the force that compels the owners of resources to do the bidding of consumers. We turn now to a study of how this result is obtained. In this study we shall examine the operation of the entire signal system of an enterprise economy. We shall begin with an examination of […]

Specialization
ECONOMICS

SPECIALIZATION | DIVISION OF LABOR | ADVANTAGES AND CONDITIONS

What is Specialization? Specialization could be an approach developed by a business to deliberate on the assembly of a awfully restricted vary of product or services so as to achieve most productivity, experience and leadership within the targeted field. Firms that specialize say they get a far better come on investment. As we know that […]