INCREASING RETURN TO SCALE
Increasing
return to scale to means proportional increase in output is greater than
proportional increase in input.
Example: Hindi
was introduced as 3rd language in standard 6. But the marks obtained
in hindi was more than the effort put in studying hindi.
OPPORTUNITY COST
Opportunity
Cost can be termed as alternative cost that has to be forgone for the decision
taken of current use.
Example: As
one of my father’s fixed deposit matured I invested the sum in purchasing a new
computer but my father had the option of reinvesting the same in fixed deposit.
DIMINISING MARGINAL UTILITY
Utility can
defined as level of satisfaction that is achieved by consumption of goods and
service. Diminishing marginal utility can be defined as decrease in additional
utility that can be achieved consumption of additional unit of goods and
service.
Example : As
I was playing more of a game Max payne additional utility that I achieved by
playing the reduced over time.
PRODUCTION
POSSIBILITY CURVE
Production
possibility curve can be termed as amount of goods and service can be produced by
switching resources between this goods and services.
Example: I
had the option of investing time between my family business and higher studies
after graduation.
CROSS
PRICE ELASTICITY
Cross price
elasticity of demand can be termed as change in demand of a good due to change
in price of another good.
Example: Need for good result in accountancy due to bad preparation in data analytics.
No comments:
Post a Comment