Economic Empowerment- what is meaning by economic Empowerment- why is economic Empowerment important- what is social and economic Empowerment

Economic empowerment is the crying need of this hour. “Wage employment means economic power” (Elliott, 2008, p. 86). Through employment women earn money and it enables women and girls to become ‘bread earners’, contributing members of households with a strong sense of their own economic independence. “Economic empowerment is a powerful tool against poverty” (Biswas, […]

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Social cost,Opportunity cost,Sunk cost,Floating cost,Prime cost,Fixed cost, Variable cost

Social Cost: It refers to the total cost borne by the society due to the production of a commodity.Alfred Marshall defined the term social cost to represent the efforts and sacrifices undergone by the various members of the society in producing a commodity. Social Cost is the cost that is not borne by the firm, […]

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Cost Concepts

1.Money Cost: Production cost expressed in money terms is called as money cost. In other words, it is the total money expenses incurred by a firm in producing a commodity. Money cost includes the expenditures such as cost of raw materials, payment of wages and salaries, payment of rent, interest on capital,expenses on fuel and […]

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Factors governing elasticity of supply and conclusion

Factors governing elasticity of supply: 1. Nature of the commodity: Durable goods can be stored for a long time. So, the producers can wait until they get a high price. Once they get higher price, larger supply is possible.The elasticity of supply of durable goods is high. But perishables are to be sold immediately. So […]

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Supply Schedule and Supply Curve

Supply Schedule: A supply schedule shows the different quantities of supply at different prices.This information is given in the supply schedule given below. Supply Curve: A supply curve represents the data given in the supply schedule. As the price of the commodity increases, the quantum supplied of the commodity also increases.Thus the supply curve has […]

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Law of Supply

Law of Supply is associated with production analysis. It explains the positive relationship between the price of a commodity and the supply of that commodity. For example, if the price of cloth increases, the supply of cloth will also increase. This is due to the fact that when price rises, it is profitable to increase […]

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Cobb-Douglas Production Function

The Cobb-Douglas Production Function was developed by Charles W. Cobb and Paul H. Douglas, based on their empirical study of American manufacturing industry. It is a linear homogeneous production function which implies that the factors of production can be substituted for one another up to a certain extent only. The Cobb-Douglas production function can be […]

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Producer’s Equilibrium

Producer equilibrium implies the situation where producer maximizes his output. It is also known as optimum combination of the factors of production. In short, the producer manufactures a given amount of output with ‘least cost combination of factors’, with his given budget. Optimum Combination of Factors implies either: *there is output maximisation for given inputs […]

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The Iso-cost Line

The iso-cost line is an important component in analysing producer’s behaviour. The iso-cost line illustrates all the possible combinations of two factors that can be used at given costs and for a given producer’s budget. Simply stated an iso-cost line represents different combinations of inputs which shows the same amount of cost. The iso-cost line […]

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Iso-quant Curve and Iso-quant Map

An equal product curve represents all those combinations of two inputs which are capable of producing the same level of output. An iso-product curve can be drawn with the help of iso-quant schedule. Iso-quant Map: An iso-quant map has different iso-quant curves representing the different combinations of factors of production,yielding the different levels of output. […]

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Iso-quants

Production function may involve, at a time, the use of more than one variable input. This is presented with the help of iso-quant curves. The two words ‘Iso’ and ‘quant’ are derived from the Greek language, meaning ‘equal’ and ‘quantity’ respectively. In our presentation only two factors, labour and capital are used. In Economics, an […]

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What is Diseconomies of Scale and How its affects organisation

The diseconomies of the scale are a disadvantage to a firm or an industry or an organisation. This necessarily increases the cost of production of a commodity or service. Further it delays the speed of the supply of the product to the market. These diseconomies are of two types: a) Internal Diseconomies of Scale b) […]

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Economies of Scale

‘Scale of Production’ refers to the ratio of factors of production. Th is ratio can change because of availability of factors.The Scale of Production is an important fact or affecting the cost of production. Every producer wishes to reduce the costs of production. Hence he (he includes she as well) uses an advantage of economy […]

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