The following points highlight the eight main types of cost in microeconomics. The types are: 1. Opportunity Cost 2. Real Cost 3. Short-Run and Long-Run Costs 4. Fixed Cost 5. Variable Cost 6. Total Costs 7. Average Cost or Average Total Cost 8. Marginal Cost. Type # 1. Opportunity Cost: Opportunity cost is concerned with […]
Top 8 Types of Cost Studied in Microeconomics
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Time Element and Price Determination under Perfect Competition | Microeconomics
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Time Element and Price Determination under Perfect Competition! Under perfect competition, price of the commodity is determined by the forces of demand and supply. Marshall, who propounded the theory says the price is determined by the forces of demand as well as supply. He also laid emphasis on the time element in the determination of […]
Equilibrium of a Firm under Perfect Competition | Microeconomics
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A firm is said to be in equilibrium when it has no tendency either to increase or to contract its output. A firm is in equilibrium when it is earning maximum profit. Conditions of Equilibrium: A firm would be in equilibrium when the following two conditions are fulfilled: 1. MC = MR. 2. MC curve […]