09Sep 2018 by admin

What is the Relationship between Short-Run and Long-Run Cost Curves? – Explained!

Essays
In the short-run, total quantity of at least one factor of production remains fixed and quantities of other inputs can be changed. Suppose, in a two input framework, capital is the fixed input and OK amount of capital is employed (see figure 9.8).To show the relation between short run Total Cost curve and the long run Total Cost curve we use a fixed set of isocost lines (represented by a2b2, a3b3 and a5b5) and a particular isoquant map (comprising of isoquants I, II, III only) is used.First, consider isocost line ‘a2b2‘. Given this cost constraints and pre­fixed amount of capital OK, maximum amount of labour to be employed is determined by the point of intersection between KK line and isocost a2b2 (i.e., point ‘n’). ADVERTISEMENTS: This point of intersection shows…
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09Sep 2018 by admin

3 Most Important Types of Returns to Scale in Production

Essays
Returns to scale refers to a relationship which shows the degree of change in output caused by change in quantities of all inputs in a fixed proportion. The concept of returns to scale is a long-run concept, because it refers to a case where all inputs are variable.In this context, it is also important to distinguish returns to scale from returns to a factor. Instead of all factors, when a relationship specifies change in output as a result of a given change in quantity of only one factor of production, while keeping the others unchanged, it is termed as returns to a factor.There are Three Types of Returns to Scale: (a) Increasing Returns to Scale: ADVERTISEMENTS: When all inputs are increased by a given proportion and the output increases by…
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09Sep 2018 by admin

Useful Notes on the 5 Types of Price Elasticity of Demand

Essays
Price elasticity of demand may be of five types, viz, perfectly elastic demand, perfectly inelastic demand, unitary elastic demand, Relatively less elastic demand and Relatively more elastic demand. (a) Perfectly elastic demand: Perfectly elastic demand refers to a situation when due to a very insignificant or small change in price the quantity demanded changes infinitely. In such a case the demand curve is horizontal and parallel to OX axis. In this case the value of elasticity of demand is infinite (ed = It should be remembered that cases of perfectly elastic demand are very rare in actual life and it is only a theoretical case. ADVERTISEMENTS: In the above diagram DD, is the demand curve which is of horizontal shape. (b) Perfectly inelastic demand: This is a type of elasticity…
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09Sep 2018 by admin

What is Circular Flow of Income in a Two Sector Economy?

Trade
Modern economy is a money economy. Money is used in the process of exchange and it has removed the difficulties of barter system. As we know money acts as a medium of exchange.In an economy, households supply factors to the firms (producing units). Finns pay for the use of factors. So households receive payments from firms for their services in terms of money.So in money economy there is a flow of productive resources or factors and there is a flow of money corresponding to the flow of economic resources (or factors) and flow of goods and services produced by economic resources. Circular Flow of Income in a Two Sector Economy: ADVERTISEMENTS: As we know resources like land, labour, capital and entrepreneurial ability flow from households to firms, the producing units.…
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09Sep 2018 by admin

Useful Notes on Long-run Cost Curves

Law
Long period or Long-run refers to the time period long enough for all costs to become variable. The capital equipment of a firm can be changed in the long period, and the entrepreneur can decide to build a new plant of different size, if he likes. When all factors become variable, the scale of production is altered and the distinction between fixed costs and variable cost disappears.Since all factors are variable the firm can change the factors which will give him minimum costs. A firm always tries to remain in the minimum point of SAC. When a firm expands its output and due that average cost rises, he will shift to another SAC and to produce more output at the minimum of this SAC by changing variable factors. So every…
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09Sep 2018 by admin

Who Can Petition for a Compulsory Winding up of A Company? (Section 439 Companies Act, 1956)

Government
A petition for compulsory winding up of a company may be filed in the court by any of the following persons (Sec. 439). 1. Petition by the company: A company can make a petition to the court for its winding up by an order of the court, when the members of the company have resolved by passing a special resolution to wind up the affairs of the company. Managing 2. Petition by the creditors: A creditor may make a petition to the court for the winding up of the company, when he is able to prove that die company is unable to pay off his debts exceeding 1500 within three weeks of the notice of demand or where a decree or any other process issued by the court in his…
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09Sep 2018 by admin

Essay on Biodiversity Conservation

Management
Our ecosystem involves complex interlocking of individual species which have evolved over millions of years. In this complex jig-saw puzzle kind of framework, the loss of any species has a significant impact on the remaining species. There is a danger of collapse of the ecosystem with some key pieces being lost.Bio-diversity actually refers to the whole set of life forms that exist on this earth. Varieties exist at genetic as well as species level. Genetic meaning that there are genetic variations between individuals of same or different populations of the same species. Variety at the level of species means existence of different species that are inter-related by taxonomy. Ecosystem diversity or biodiversity is thus clearly not definable as there are not distinct boundaries between the ecosystems and they merge into…
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09Sep 2018 by admin

Useful Notes on The Right of Personal Hearing in India

Government
When a party does not ask for an op­portunity for granting a personal hearing, there can be no injustice in not following that course. In another Calcutta case, no personal hearing was asked for or sought in the reply to the show-cause notice. It was held that—(a) Personal hearing or right to cross-examine is not in every case part of the reasonable opportunity. ADVERTISEMENTS: (b) It depends upon the facts and circumstances of each case.The Gujarat High Court held that:1. Before Article 311 (2) of the Constitution was amended in 1963, the decision of the various High Courts were not uniform—(a) On the subject of personal hearing being given to the delinquent, and ADVERTISEMENTS: (b) On the subject whether reasonable opportunity to be given to the servant was meant that…
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09Sep 2018 by admin

Essay on Ethics and Morals

Relationships
Moral and ethics are of high importance in determining the nature of a society or a culture. Morals and ethics are used as complimentary terms but they mean different in literal sense.Morals define personal character and refer to the beliefs that a person practices when he interacts in personal and social relationships. The conduct exhibited by the person in personal-social behaviors gives a correct evaluation of his morals. Morals identify the way a person lives. Ethics are the codes or standards of conduct expected by the group to which the individual belongs.In other words, ethics are the set of principals or the theory that decide a person’s moral values. Ethics can also be defined as the manual defining the code of morals. The presence of qualities showing high ethics in…
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09Sep 2018 by admin

7 Important Sources of Soil Pollution and it’s Effects

Development
Some of the sources of soil pollutions are discussed below: 1. Industrial wastes: There are two kinds of wastes that are generated from industrial activities: unused chemicals and unwanted industrial garbage.Unused chemicals like fly ash, sludge, plastics and sawdust are some of the chemicals that are discharged from industries. ADVERTISEMENTS: Unwanted garbage from industrial activities like glass, metals and wood are the other kinds of wastes which industries generate. When these wastes are left on the soil’s surface, they change the chemical composition of the soil. The physical qualities of soil are also altered. Such sources of soil pollution make the soil harmful as well as barren.Effects: i. They spoil the fertility of the soil.ii. The chemicals released are harmful to living organisms dependent on the soil. ADVERTISEMENTS: iii. Contamination…
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