Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. Probably the most important reason for studying economics...
Economies of scale: Economies of scale refers to the situation where long-run average costs fall as the scale of production is increased. If all factor costs are constant, then increasing returns to scale...
Cost Concepts: The various relevant concepts of costs used in business decisions are discussed below: Opportunity Costs and Outlay Cost. Explicit and Implicit/ Imputed Cost. Historical Cost and Replacement...
We need to know Pareto improvement to understand Pareto Optimality/Efficiency. Pareto Improvement If we can find a way to make some people better off without making anybody else worse off, we have a...