Banking Gyan

Price and Output Determination Under Various Market Systems

Perfect Competition It is the market structure where a large number of buyers and sellers, with homogeneous products, are present. […]

Proposed by or based on George Stigler (in 1939) The traditional theory of cost was criticized both theoretically and empirically

1) Cost Approach of Production Planning: This approach of production planning aims to minimize the cost. If the output is

If a firm produces two or more products jointly, then the pricing of these different products is the joint product

What is Economies of Scale? Economies of scale are defined as the benefits to the firm in the form of

Average Cost Curve: Short-run and long-run average cost curve Short-run Average Cost Curve i) Average Fixed Cost (AFC) Curve: AFC

It is a tool/instrument of tax planning avoidance. It is the mechanism for determining the cost/price while transferring a product

Cost Centre – Do not generate revenue. For example, the IT Department and the HR Department. Profit centre – It

The expansion of a business enterprise is beneficial in terms of the economies of scale and scope, creation of market

Reasons for expanding the enterprises: A business enterprise expands its size in terms of the market share, sectors, products, etc.

Decision Analysis Problem (DAP) is a systematic way of assessing the various alternatives and selecting the best alternative to achieve