Market Equilibrium in Economics
Business, Economics

Market Equilibrium in Economics

What is Market Equilibrium in Economics? Market equilibrium is a situation when price of a goods is such that the quantity the buyers are willing to purchase (demand) is exactly equal to the quantity the producers are offering for sale (supply).                       Quantity Demand = Quantity Supplied Shortage: A shortage exists in a market if the quantity demanded of a…

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Difference Between Quantity Demand and Quantity Supply?
Business, Differences, Economics

Quantity Demand and Quantity Supply

Quantity demanded is the actual amount of the commodity bought at specific price in a particular market during a specific period of time. Quantity supply means the number of commodities offered for sale at a particular price. The term supply is different from production or stock.

Gross Profit and Net Profit
Business, Differences, Economics

Difference Between Gross Profit and Net Profit?

Gross profit is the amount left out of total revenue after paying for all the factor services which contributed to the production process.                   Gross Profit = Sales or Revenue – Cost of Goods Sold Net profit is the amount left out after the deducting of all working expenses from its gross profit.                   Net Profit = Gross Profit –…

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Difference Between Firm and Industry?
Business, Differences, Economics

Difference Between Firm and Industry?

A firm is an organization under a management set up that purchases and organizes resources to produce goods and services. For example, Pace Departmental store, London Steel Mill, all are different firms. A group of firms that sell similar products are called industry. For example, Honda, Suzuki, Ford, etc. are part of the auto industry.

Total Revenue and Marginal Revenue
Business, Economics

Total Revenue and Marginal Revenue

What is Total Revenue (TR)? The total monetary value of the sales of the products of a firm during a particular period time is called Total Revenue. For Example, if 30 units of a commodity are sold at a price of $10. The total revenue will be 30 × 10 = $300. If total revenue is denoted by TR, price…

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Difference between Centralization and Decentralization?
Business, Differences, Economics

Difference between Centralization and Decentralization?

Centralization is the process in which decision making is concerned at the top management. It helps in coordination and leadership. It is the best suited for small sized businesses, companies and organizational sectors. The procedure of decision making in the centralized culture is comparatively slow than decentralized culture. Organizational structure in which many individuals or sub-units can make decisions is…

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How does Robbins define Economics?
Business, Economics

How does Robbins define Economics?

Robbins defines economics as a science of choice between alternative ends when we have scare means to achieve those ends. He thought that wants are unlimited but the resources are limited so we have to choose to achieve specific wants according to a priority list.