Category: Essays

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…

When the authority given to an agent cannot be revoked, it is said to be an irrevocable agency. An agency becomes irrevocable in the following cases: 1. Where the agency is coupled with interest (Sec. 202): Where the agent has himself an interest in the subject-matter of agency, the agency is said to be coupled with interest. Such an agency is created with the object of protecting or securing any interest of the agent. ADVERTISEMENTS: So where a creditor is employed for valuable consideration as an agent to collect rents due to the principal (debtor) for adjusting the amount towards his debt, the principal thereby confers an interest on the agent and the authority cannot be revoked unilaterally during the subsistence of the interest, in the absence of an express…

5 Major Differences between Primary Evidence and Secondary Evidence are mentioned below: Primary Evidence: 1. Sec. 62 defines primary evidence. ADVERTISEMENTS: 2. Primary evidence means the documents itself produced for the inspection of the court.3. Primary evidence is itself admissible in the Court. Image Source: 185.26.182.2194. At the time of production of the primary evidence the adverse party has no such right.5. The primary evidence is the best evidence. Secondary Evidence: ADVERTISEMENTS: 1. Sec. 63 defines secondary evidence.2. Secondary evidence means:(a) Certified copies;(b) Copies made from the original by mechanical process with accuracy; ADVERTISEMENTS: (c) Copies made from or compared with the original;(d) Counterparts of a document;(e) Oral accounts of the contents of document given by some person.3. When the primary evidence is not available, then only the secondary evidence…

9 Major differences between “May Presume” and “Shall Presume” are listed below: May Presume: 1. The word “may” itself denote ‘expressing or seeking permission’. Example: “May I come in, Sir.” Giving the permission depends upon the discretion of the teacher or boss, as the case may be. “May presume” is based upon this concept.2. The first clause of Sec. 4 of the Evidence Act defines “may presume”. ADVERTISEMENTS: 3. According to the first clause of Sec. 4, whenever it is provided by this Act that the Court may presume a fact,—(i) It may either regard such fact as proved, unless and until it is disproved; or(ii) It may call for proof of it.4. The word provided in the first clause is weaker than the word directed in the second clause.…

The points of distinction between a promissory note and a bill of exchange are as follows:1. Number of parties:In a promissory note there are two parties the maker of the note and the payee. In a bill of exchange there are three parties the drawer, the drawee and the payee. ADVERTISEMENTS: 2. The maker of a note cannot be the payee. In the case of a promissory note the maker cannot be the payee for the simple reason that the same person cannot be both the promisor and the promisee. But in a bill of exchange the drawer and the payee may be one and the same person as where a bill is drawn “Pay to me or my order.” Image Source: image.slidesharecdn.com3. Promise and order: ADVERTISEMENTS: In a promissory…

Although a cheque, being a species of a bill of exchange must satisfy almost all the essentials of a bill, e.g., signed by the drawer, containing an unconditional order to pay a certain sum of money, to the order of a person or the bearer, etc., yet there are few points of difference between the two, namely: 1. A cheque is always drawn on a banker, while a bill may be drawn on any person, including a banker. 2. A cheque can only be drawn payable on demand, whereas a bill may be drawn payable on demand or on the expiry of a certain period after date or sight. Image Source: edu.uwo.ca ADVERTISEMENTS: 3. A cheque drawn ‘payable to bearer on demand’ is valid but a bill drawn ‘payable to…