Month: October 2020

A business firm should consider the following factors while developing an advertising policy: Advertising elasticity of demand Cost of advertising Target group e.g. the youth, business community, professionals, etc. The appropriate time to advertise Means of advertising e.g. electronic or Read More …

Advertising refers to the whole process or set of informative, educative and persuasive promotion activities aimed at influencing the perception of the consumer and therefore the effective demand for a product or service. On information, advertising is a medium through Read More …

Implicit Costs: These are costs of self-owned, self employed resources used by a firm in the process of production (abstract costs) eg. opportunity cost, individual managerial skills etc. Such costs are not fixed and it’s the owner who evaluates them. Read More …

Isoquants: An Isoquant is a locus of technically efficient combinations of two factors of production their utilization from which the same level of output is produced; its slope measures the marginal rate of technical substitution (MRTS) of one factor (eg Read More …

Producer’s Surplus:- is the difference between the total amount producers receive for any given quantity of a product and the minimum amount they would have been willing to accept for that quantity. It can also be defined as the gain Read More …

Refers to the rate at which one currency exchanges for another that is the amount of one currency that is exchanged for a unit of another currency in a given exchange rate regime. In a fixed exchange rate regime, the Read More …