Microeconomics

The cartoon depicts a market economic system. It highlights the key factors which can influence the entire economic system of a country. The “chop” represents the resources required for the different enterprises (represented by the people seated at the table) to compete. The cartoon also shows that there are limited resources and that each enterprise has to work fast, and smart to succeed. It also highlights the fact that even though all the enterprises are given an equal chance, some are at a…

There are many goods and services available in the modern era with prices and value being very distinct, but the question arises, what determines the value of a good and why does the value of a good fluctuate as time passes? Thus came about the labour theory of value. “The labour theory of value can be stated simply as the principle that the source of the value added of the mass of commodities produced is the labour expended in producing them”(Foley,1986,P.14). Many economists made the attempt…

Few would contradict the fact that the investment in infrastructure is important to the economy or an infrastructure in good working order is obviously a necessary condition for economic activity. According to Eberts (2002) , the essential question is whether, at the margin, an additional investment infrastructure contributes to economic growth. To policy makers, this Growth has several possible outcomes, including employment growth and income, improving the quality of life, environmental…

Pear Assignment #1 In a recent article published by the Toronto Star, attention is drawn to the current strain on the healthcare system and how it will increase in the future. Political leaders are urged to take action before the situation becomes worse. Experts anticipate the number of senior citizens to double in the coming years as a result of the baby boom. This will place an even bigger strain on the already stretched healthcare budget and may send this sector into crisis. An economic…

Money can mean many things and function in many ways. Everyone has their own definition of money. Some people see money as the most valuable aspect of life. Whereas, others see it as an evil thing. The answer to if we make money or does money make us will vary from people to people depending on their ideas and views about money. These two ideas work hand in hand. We make money by creating it, earning it and putting a value on it, which then makes us by giving us power, security, and self-worth.…

1. INTRODUCTION 1.1. CONSUMER SURPLUS Consumer surplus is an economic measure of consumer satisfaction, which is derived by analyzing the difference between what consumers are willing to pay for a good or service, relative to its market price. When the consumer is willing to pay more for a given product than the current market price, consumer surplus concept occurs. This is not a tangible surplus. For example, if you are in need of some computer accessories and your budget would be Rs. 15,000…

MARKET STRUCTURE Market structure is defined as the organizational and other characteristics of a market. The economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market as the major characteristics. Market structure also mean that the number of firms in the market that produce identical goods and services. The market structure has a great influence on the behaviour of individuals firms in the market and will affect how firm…

The principle of competitive exclusion, also known as Gause’s principle, tells us that it is impossible for any two organisms to occupy the same niche without one of them going extinct (Hardin 1960; Gause 1934). This principle is easy to see in frugivores, grainivores, and carnivores that use discrete food packets, such as an insect or seed (Hanley 1982). MacArthur (1958) clearly demonstrated that each species is uniquely adapted to their niche and their competitive advantage prevents niche…

A Few Firms: Oligopoly is a market structure where there are only few firms, or a few large firms controlling a big size of its output. 2. Firms are mutually Dependent: The most important feature of oligopoly is that firms are mutually dependent in decision making which means that firms consider the market conditions carefully. The firms carefully consider the actions one firm and its effects on the competitor and how its competitors are likely to react. This makes the firms mutually dependent…

Abstract: The purpose of the study is to examine the factors that affecting the purchasing behavior of a consumer. 1. Introduction: Consumer goods are products that are purchased for final consumption by the average consumer. It can be called as finished goods; consumer goods are the end result of production and manufacturing. Cosmetic products are also one kind of consumer goods. Cosmetic products are defined as any substances or preparations that are intended to be placed in…