Economic Study

 

  Video explanation

Economics is a social science which concerned with the how an individual, organizations and businesses makes an optimal decision under the condition of scarcity. Different economics give different definitions with time. some Economist's definitions are below: Definition of Economics 1)Wealth definition of economics: - Or Classical definition of economics Adam smith (Father of economics) According to him, economics deals with wealth alone. Wealth means material goods (tangible in nature). 2)Neo-classical definition of economics Or Material welfare definition of economics: - Marshall  All those activities which are undertaken to acquire those material goods which promote welfare of mankind. 3)Scarcity definition of economics: - Lord Robbins According to him, economics deals with fuller utilization of scare resources having different uses. 4)Growth oriented definition of economics: - Prof. Samelson According to him, economics includes all those activities which are undertaken/done to...

  O ligopoly   It is the market situation in which there are large number of buyers but only few sellers of a product  for example, mobile companies, etc. Features of the oligopoly 1)  Large number of buyers no individual buyer can influence market demand 2)  Few sellers of product each seller can partially control the market supply 3)  Inter dependence in decision-making If there is a fall in price of one company's product, it may lead to fall in price of another firms. 4)  High barriers to enter Huge investment is required 5) Advertisement expenses 80% of advertisement are done for oligopoly market 6)  Indeterminate demand curve If one firm reduce its price, other will follow.

  M onopolistic Competition It is a market situation in which there are large number of buyers and seller which buy and sell different goods and services. Features of Monopolistic Competition 1)   Large number of buyers  and no individual buyer can influence market demand. 2)  Large number of sellers  and no individual seller can influence market supply. 3)   Differentiated goods  are those goods which differ in term of quality for example Soaps.it also called product differentiation. 4) Imperfect knowledge:  Due to the differentiated goods, the price of goods may not be known to the consumers. 5)   Selling cost: It includes all the expenses made to increase the sale of a product for example advertisement etc. 6)  Few restrictions:  Copyright, Patent right 7)  Demand Curve: More elastics mean there will be more change in demand with the change in price. It is due to substitutes, more substitutes more elasticity. 8)   R...

 Measures of Dispersion it includes:  Range (R) Inter-quartile Range Quartile Deviation Standard Deviation What is Range? It is the difference between the highest and lowest value of the series. It is denoted by (R) R= H-L           where H is the highest value L is the lowest value Coefficient of R =H-L/H+L How to determine: A) Individual series: find R and Coefficient of R 3,8,2,5,6,9,10 Sol: - R = H-L H=10 L=2 put into formula R = 10-2 =8 Coefficient of R =H-L/H+L           = 10-2/10+2            =8/12           = 0.67 This was an individual series, Next. B) Discrete Series: - There is a same formula, but the highest value and the lowest value are in X series(variable) not in Y series(variable).  R= H-L H: highest value of X L: Lowest value of X Do not see frequency of Y So, H =50 K=10 put values in the formula R= 50-10 = 40 Coefficient of R = H-L/H+L = 50-10/5...