01: The Nature of the Economic Problem


02: The Factors of Production

 


 

03: The Opportunity Cost


04: Opportunity Cost of Economic Actions


05: Specialization and the Need for Exchange




06: Allocation of Resources in Different Economic Systems


07: Evaluation of the Relative Merits of Different Economic Systems and their Effectiveness





08: Types of Business Organization in the Private and Public Sectors


09: Effects of Changes in Structure of Business Organizations



10: Trade Unions and their Role in the Economy


11: Functions of Central Banks, Stock Exchanges, and Commercial Banks


12: The Principle of Equilibrium Price


13: Causes of Changes in Demand and Supply and their Effects


14: Price Elasticity of Demand (PED) and Supply (PES) with Simple Calculations



15: Usefulness of PED and PES in Particular Situations


16: The Purpose and Methods of Advertising


17: Pricing and Output Policies in Perfect Competition and Monopoly

In Perfect Competition:

Prices are determined by the market forces of demand and supply. All firms are price takers.
Demand Curve is perfectly elastic. Average Revenue (AR) and Marginal Revenue (MR) remain the same. Price is determined where Marginal Cost (MC) equals Average Cost (AC).

In a Monopoly:

Either price or output is set by the firm. Firm is a price maker. Demand Curve slopes downwards. It is also the market demand curve. Average Revenue (AR) and Marginal Revenue (MR) will fall. Price is determined at a point which is higher than Marginal Cost (MC) and Average Cost (AC). 

Differences between Perfect Competition and Monopoly

Perfect Competition
Monopoly
Many suppliers
Single supplier
Firms are price takers
Firm is a price maker
Small scale production
Large scale production, economies of scale
High Average Cost
Lower Average Cost
Lower selling price due to competition
Higher selling price
Enjoys Normal profit
Enjoys Abnormal profit
No serious barriers to entry
Entry restricted by various barriers
Competition leads to efficiency
No competition

Reasons for discouraging monopolies

  • It restricts supply and raises revenue 
  • It makes excessive profits 
  • Lack of competition leading to inefficiency 
  • Less varieties of goods and services 
  • Restricts new ideas 
  • Limits new products etc 

In Perfect Competition: Prices are determined by the market forces of demand and supply. All firms are price takers. Demand Curv...

18: Factors Affecting an Individual’s Choice of Occupations


19: Changes in Earnings over Time between Occupations and Between Economic Sectors


20: Differences in Earnings between Occupational Groups and Different Economic Sectors


21: Different Motives for Spending, Saving and Borrowing




Kids Products Clothing Footwear Baby Care Toys/Games School Supplies ...

22: Reasons for Different Expenditure Patterns of Different Income Groups


23: Profit Maximization as a Goal


24: Integration, Economies and Diseconomies of Scale



25: Total Cost, Average Cost, Fixed Cost and Variable Cost



26: Effects of Changes in Average Cost and Effects of Substituting One Factor for Another


27: Total Revenue and Average Revenue


28: The Government as a Producer of Goods and Services and as an Employer




29: Aims of Government Policy


30: Types of Taxation




31: Reasons for Government’s Influence on Private Producers


32: Possible Conflicts between Government Aims



Kids Products Clothing Footwear Baby Care Toys/Games School Supplies ...

33: The Impact and Incidence of Taxation