Payments for the applications of human efforts for the production of goods and services is termed as wages.
The economic value of good or services is called price.
Remuneration for land (a factor of production) is called rent.
The positive difference between revenues and cost is called profit and is claimed by the entrepreneur.
Payments for those goods which are used to produce other goods are called interest ie payments (remuneration) or capital.
In economics value means value in exchange ie value of a commodity is the amount of other goods and services which is obtained in exchange for it.
To be an economic good an object must be: 1. material 2. useful 3. scarce 4. transferable for example shoes, pencils, mangoes, etc
A free good have the following characteristics; 1. material 2. useful 3. transferable ie it takes the factor " Scarcity" for example Air and sunshine etc
Demand is a schedule which shows the various amounts of product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time.
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
The Equi-Marginal Principle can be applied to both consumption as well as production Discuss this statement with the help of an example?
No, but can you.
What are the dominate method of resource allocation?Discuss with the help of example?