Author: indiafreenotes

It is generally held that the main motive of a firm is to make profits. The volume of profit made…

Risk-Bearing Theory of Profit: The main proponent of this theory is Prof. Hawley. According to Hawley, one of the major…

Economies of scope are “efficiencies formed by variety, not volume” (the latter concept is “economies of scale”). In economics, “economies”…

A cost function is a formula used to predict the cost that will be experienced at a certain activity level.…

The demand function shows the relation between the quantity demanded of a commodity by the consumers and the price of…

Discounting principle is a continuation of time perspective & we can say it is a corollary of time perspective. The…

The Law of equimarginal Utility is another fundamental principle of Econo­mics. This law is also known as the Law of…

The incremental concept is closely related to the marginal costs and marginal revenues of economic theory. Incremental concept in managerial…

Opportunity costs are cash outflows prevented by taking one course of action instead of another. They include returns, which the…

The economic concepts of the long run and the short run have become part of everyday language. Managerial economists are…