Category: Essays

The long run marginal cost (LMC) curve shows the minimum amount by which cost is in­creased each time, when output is increased or the maximum amount of total cost that can be reduced, when output is reduced.LMC curve is derived from the short run marginal cost (SMC) curves by considering the points of intersection of the SMCs, with vertical lines drawn from the points of tangency of corresponding SAC and LAC curve to the X-axis. This is illustrated in Fig. 9.14, where initially LAC curve is drawn through short- run average cost (SAC) curves. For the sake of simplicity, only three SAC curves have been considered.In the long run, if the firm wants to produce OQ, output, it will choose the plant corre­sponding to SAC1. For this level of output,…

The triba’ls life revolves round liquor. Most of their rituals are per­formed by the offering and consumption of liquor. The state governments have prohibited the distillation of liquor. Admittedly, drinking liquor is injurious for health. But, for triba’ls, it is an abiding tradition. Efforts can be made to reduce the consumption of liquor, but the triba’ls think it as an encroachment on their tradition. Prohibi­tion has led to illicit distillation and the resultant police harassment and litigation. Elwin has a counter-argument against the prohibition on liquor. He says that when a tribal goes to a public vendor for drinking he learns the evil habits of urban life. Home distillation of liquor is not very easy. Image Source: cdn.youthkiawaaz.com ADVERTISEMENTS: When it is brewed in the house, the elderly members of…

Natural methods of contraception or preventing pregnancy include:(a) Coitus interrupts (b) Rhythm method (c) Abstinence(a) Coitus Interrupts: ADVERTISEMENTS: It means withdrawal of the penis (the male organ) before ejaculation. This is also known as “Withdrawal” method. This is perhaps the oldest contraceptive procedure known to man.Coitus Interrupts avoids the flow of semen into the female genital tract. The Advantage of this method is that no supplies or particular preparations are needed. It costs nothing.But in order to practise it successfully, it is necessary that the man must have sufficient self-control. Some men are physically or emotionally unable to use this method.This method may fail due to escape of semen before ejaculation or delayed withdrawal or deposit of semen in the women’s external sexual organs which may result in pregnancy. Image…

The term ‘accord‘ signifies the ‘agreement’. The term ‘satisfaction’ indicates the ‘consideration which pacifies the aggrieved party’.A publishes certain defamatory matter against B. B sues A for defamation claiming rupees two lakhs as damages.B offers apology to A, and offers to pay Rs. fifty thousand towards the damages. A satisfies with the apology tendered by B and with the amount offered. ADVERTISEMENTS: Thereby an agreement is concluded between them. When the agreement concluded between them is called ‘accord’, and the efforts of B to satisfy A is called ‘satisfaction’, and finally this arrangement is called ‘accord and satisfaction’.Accord’ without ‘satisfaction’ doesn’t bar the right of action of the aggrieved party. However, where ‘satisfaction’ is made by a promise to pay the damages at a future date makes the full stop…

Contraction of demand is just opposite of its expansion while a decrease in demand is just opposite of an increase in it. Other things remaining unchanged, less of a product is demanded at a higher price. Fall in demand caused by a rise in price of the product is called ‘contraction of demand.’ Figure 2.10 demonstrates it.On the other hand, ‘decrease in demand’ refers to a fall in the quantity of the product demanded due to a negative or unfavorable change in one of the shift-factors, namely, income of the consumers or prices of related goods, or tastes, preferences and fashions while product price remains as before.When quantity demanded of a good in common consumption decreases in response to a decrease in purchases made by some individuals out of pride,…

The objective of price discrimination is to secure maximum profits by adjusting the price and the output in each distinct sub-market according to the demand conditions. Assuming constant cost conditions in each market, the monopolist has to determine (i) how much total output is to produced and its distribution in each market, and (ii) what prices should be charged in different markets.For the sake of analytical simplicity we assume that the monopolist is able to divide the market for his product into two sub-markets, viz., I and II, whose demand curves are AR, and AR2 respectively with different price elasticities of demand (Fig. 14.10). Image Source: heffins.com ADVERTISEMENTS: The marginal revenue curves corresponding to these given demand or average revenue curves are given by MR1, and MR2 respectively. To determine…

We know that average product (AP) of an input is equal to the total product or output (Q) divided by the number of units of variable input (N). Therefore,AP=Q/N=> 1/AP = N/Q ADVERTISEMENTS: Further,Average variable cost (AVC) = TVC/Q=>AVC=N?P/Q=P. (N/Q)Here, ‘P’ is the price per unit of the variable factor. ADVERTISEMENTS: Substituting equation (11.1) in equation (11.2) we getAVC = P. (1/AP) Image Source: ofslides.comThus, average variable cost is equal to the price of the input multiplied by the reciprocal of its average product. Given the price of the variable input (P), the average variable cost is equal to the reciprocal of the average product. In other words, the average variable cost and average product vary inversely with each other. ADVERTISEMENTS: When average product rises in the beginning (as more…

Difference between Show Cause Notice and Charge Sheet are given below:A Show Cause Notice is a statement which informs the delinquent employee of the acts alleged to have been committed by him and seeks his explanation in respect of them. It is a fact finding exercise. However it does not strictly indict the employee of any misconduct or contain any statement of charges. ADVERTISEMENTS: A Show Cause Notice enables the Disciplinary Authority to ascertain whether there is any prima facie case for conducting any enquiry into the matter or treat the matter as closed or dispose it with a minor penalty of censure or warning.Whereas a Charge Sheet is a Statement of Imputations/Allegations and contains clearly spelt out charges quoting penal provisions of standing orders or service rules. The Show…

4 Most Important Differences between “Judgment” and “Decree” are mentioned below: Judgment: 1. Sub-section (9) of Section 2 defines “Judgment”. ADVERTISEMENTS: 2. Rules 1 to 5 of Order-2 deal with judgment.3. Section 33: Judgment and Decree: Image Source: familyllb.comThe Court, after the case has been heard, shall pronounce judgment, and on such judgment a decree shall follow. The judgment contemplates a stage prior to passing of a decree or order.4. There are no such types of judgment. Decree: ADVERTISEMENTS: 1. Sub-section (2) of Section 2 defines “Decree”. .2. Rules 6 to 20 of 0rder-20 deal with decree.3. After the pronouncement of the judgment, a decree shall follow.4. There are five types of decree recognised by the Code,— ADVERTISEMENTS: (a) A preliminary decree;(b) A final decree;(c) A decree which is party…

3 Most Important difference between Necessary and Proper Parties are listed below: Necessary Party: 1. A necessary party is one whose presence is indispensable to the constitution of the suit, against whom no effective order can be passed. ADVERTISEMENTS: 2. In absence of necessary party, no decree can be passed.3. Example: In a suit for partition, all sharers are necessary parties. Image Source: ourhenhouse.org Proper Party: 1. A proper party is one in whose absence an effective order can be passed, but whose presence is necessary for a complete and final decision on the question involved in the suit.2. In the absence of a proper party a decree can be passed. ADVERTISEMENTS: 3. EXAMPLE: A suit is filed by the house owner against a tenant. The tenant is a necessary…