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MMPC 10

Discuss the profit maximizing output decision by perfectly competitive firms in the long run when all inputs and costs are variable

In a perfectly competitive market, firms aim to maximize profit by determining the optimal level of output. Here’s how the profit-maximizing output decision works in the long run when all inputs and costs are variable: Characteristics of Perfect Competition Profit Maximization in the Long Run Implications In summary, perfectly competitive firms maximize profit by producing… Read More »Discuss the profit maximizing output decision by perfectly competitive firms in the long run when all inputs and costs are variable

Write short notes on Decision Tree, Tastes and Preferences as determinants of demand, Economic and Technical Efficiency, and Monopoly

Here are short notes on each of the requested topics: Decision Tree A decision tree is a graphical representation used for decision-making that outlines various possible outcomes of a series of choices. It consists of nodes (decision points), branches (choices), and leaves (outcomes). Each branch represents a possible decision or event, while the leaves illustrate… Read More »Write short notes on Decision Tree, Tastes and Preferences as determinants of demand, Economic and Technical Efficiency, and Monopoly

According to the Equi-Marginal principle, different courses of action should be pursued up to the point where all the courses provide equal marginal benefit per unit of cost

The Equi-Marginal Principle is a fundamental concept in economics and decision-making that suggests resources should be allocated among different courses of action to maximize overall utility or benefit. According to this principle, the optimal allocation occurs when the marginal benefit per unit of cost is equal across all options. Explanation of the Equi-Marginal Principle Example… Read More »According to the Equi-Marginal principle, different courses of action should be pursued up to the point where all the courses provide equal marginal benefit per unit of cost