Exceptions to the Law of Demand
Exceptions to the Law of Demand Exceptions to the Law of Demand refer to those circumstances and reasons in which this law does not apply. In other words, there are certain circumstances in which...
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Assumptions of the Law of Demand
Assumptions of the Law of Demand The Law of Demand If other things remain constant’ is an important clause of the law of demand. This clause means that the law will apply if certain...
Law of Demand
Law of Demand The law of demand is one of the fundamental laws of economics. The law of demand explains the relationship between the price and demand of a commodity. It is a matter...
Types of demand
Types of demand (i) Demand for consumer goods and producer goods- Consumer goods are those final goods which directly satisfy the needs of the consumer. Such goods are: bread, milk, clothes, furniture etc. Capital...
Theory and Nature of Demand
Theory and Nature of Demand The theory of demand plays an important role in business decision making. In every business firm, there are many issues on which the executives have to take decisions such...
Determination of profits under perfect competition – Modern profit theory
Determination of profits under perfect competition – Modern profit theory Selling Powers of Perfect Competition – Modern Profit Theory Profit is demanded like the reward of any other factor-service and the power of the...
Marginal Productivity Theory of Profit-
Marginal Productivity Theory of Profit- Like any other factor, an attempt has been made to explain the determination of remuneration of an entrepreneur in terms of his marginal revenue productivity. Angsworth, Chapman, Stigler and...
Shackle’s Profit Theory
Shackle’s Profit Theory Professor Shackle has extended Prof. Knight’s theory by introducing expectations under conditions of uncertainty. According to Shackle, expectations are of two types: general and specific. General expectations relate to general variables...
Profit Theory of Bearing Uncertainty
Profit Theory of Bearing Uncertainty Professor Frank H. Knight considers profit as the reward for bearing those risks and uncertainties which cannot be insured. He distinguishes between insurable and uninsurable risks. Some risks can...
Profit Theory – Risk
Profit Theory – Risk The risk theory of profit is associated with the name of F.B. Holley, who considers risk taking to be the main function of the entrepreneur. Profit is the residual income...