Some of the theories of interest along with its criticisms are: 1. Classical Theory of Interest 2. Loanable Funds Theory of Interest 3. Liquidity Preference Theory of Interest 4. Modern Theory of Interest 5. Expectations Theory 6. Liquidity Premium Theory 7. Market Segmentation Theory . 1. Classical Theory of Interest: The theory is also called […]
Theories of Interest in Economics (With Graphical Representation)
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Production Function in Long Run | Economics
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Having studied a producer’s behaviour in short run with the help of a production function with one variable input (viz. labour), holding other factors constant, we now focus on the same in long run in which all factors of production are variable. It means that in a two factor model a firm can vary both […]
Managerial Theories of Firm: Marris’ and Williamsons Theory | Economics
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In recent years, new theories of the firm have been developed which emphasize the role of managers and their behavioural patterns in establishing price and output under oligopolistic market conditions. Generally, the managers do not try to maximize profits but they pursue other goals. Whether, the firm try to maximize profits also depend upon who […]
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