BLACK RIDERS AND CONCEPT OF ECONOMICS

INTRODUCTION

Black Rider is one of the best national as well as international  event management. Black Rider Company organizes all types of function such as birthday parties, wedding receptions, wedding anniversary,etc both nationally and internationally. Now the concept of economics in company like Black Riders in following way :-

SUPPLY

Black Rider applies the concept of economics which is supply in-order to survive in both national and international market. Black Rider organizes more and more wedding receptions , birthdays, wedding anniversary, etc events when  the price in the market is high and try to organize less wedding receptions, birthday parties, wedding anniversary, etc events when the price in market is low. This shows  upward sloping curve which means there is positive relationship between price and services supplied.

MOBILITY OF SUPPLY

Black Rider is highly mobile company in terms of supply of its services  because its supply its services both nationally as well as internationally, Here price elasticity of supply is determine by the mobility of the company. Black Rider price elasticity of supply is elastic because company is moving nationally as well as internationally to provide its services  which lead to increase its price for the services supplied.

TRADE-OFFS

Black Rider is one of the best event company which organizes events like birthday parties, wedding receptions, wedding anniversary, etc in the best way possible so people faces trade-offs between the events that which events should be organised by Black Rider because money is limited. Here, if people wants to get wedding anniversary event organised by Black Rider they have to give up birthday parties  on the same month due to availability of limited money with them.

MARGINAL RATE OF SUBSTITUTION

Black Riders is company with a record of organizing best event both nationally as well as internationally this can only be done by substituting damaged products from new product  which helps to increase marginal revenue and decrease marginal cost of the Black Rider company. Here, marginal revenue means  revenue generated from one additional unit of new product and marginal cost means cost incurred by the company from one additional unit of damaged product.

PROFIT MAXIMIZATION

Black Rider is already using the economics concept marginal rate of substitution in daily course. By application of  marginal rate of substitution Black Rider reaches to a situation where marginal revenue is equal to marginal cost. Here, company started running the business in profit maximization.