Principle Of Economics

Theory of production Last document update:   ago

Theory of production, in economics, an effort to explain the principles by which a business firm decides how much of each commodity that it sells (its “outputs” or “products”) it will produce, and how much of each kind of labour, raw material, fixed capital good, etc., that it employs (its “inputs” or “factors of production”) it will use. The theory involves some of the most fundamental principles of economics. These include the relationship between the prices of commodities and ...

Market Structure Last document update:   ago

The Market Structure refers to the characteristics of the market either organizational or competitive, that describes the nature of competition and the pricing policy followed in the market. Thus, the market structure can be defined as, the number of firms producing identical goods and services in the market and whose structure is determined on the basis of the competition prevailing in that market.