Category: Economics

Most Highlighted Category/Types of Responsibility Centers

06/03/202318/07/2023 Study Notes Expert No Comments

The business system of responsibility accounting is divided into functional units known as responsibility centers and there are multiple types of responsibility centers. A manager is responsible for overseeing a reliable center’s operations, which includes, among other things, taking responsibility for Accounting Reports (RARS). These RARS are sent to the organization’s highest management to make…

Managerial Economics

Most Important 4 Types of Transfer Pricing Methods

18/02/202318/02/2023 Study Notes Expert No Comments

Transfer pricing is a mechanism that allows the allocation of revenues and costs to the centers which provide products and services and consumers of both services and goods. The transfer of services and goods between one business center to another within the same organization is often referred to as ‘intra-company transactions. There are various kinds…

Managerial Economics

Collusive Oligopoly: Conditions | Types | Price & Output Determination

15/11/202208/10/2023 Renu Saroha No Comments

Competing firms are termed as colluding when they make some agreement about output and pricing. These agreements may be either facet or formal. But open or formal agreements are not legal in most countries. The oligopolists’ agreement between two firms is generally secret or tacit. A collusive oligopoly comes into the frame when the firm…

Managerial Economics

Most Significant Factors and Importance of Pricing

14/11/202214/11/2022 Study Notes Expert No Comments

The price process is directly connects with the worth of a service, product or concept in terms of the amount of money available at a particular moment that the marketing manager decides to promote it to potential customers. Precisely, Pricing involves establishing objectives, determining flexibilities, establishing strategies, setting prices, and controlling implementation. Importance of Pricing…

Managerial Economics, Marketing Management

Kinked Demand Curve: Assumptions | Explanation | Critiques

10/11/202204/07/2023 Renu Saroha No Comments

Kinked Demand Curve, is an oligopoly model. Paul M. Sweezy and Hall and Hitch develop this model. Through the analysis of kinked theory of demand in oligopoly market, the author attempted to prove that price and output tend to stabilize and do not change under oligopolistic conditions and trends. Kinked Demand Curve Price cuts match…

Managerial Economics

Oligopoly: Advantages | Disadvantages | Price and Output Determination

07/11/202207/06/2023 Renu Saroha No Comments

An oligopoly market is a situation in which there is a tremendous amount of competition between several large companies and a degree of interdependence within the firm’s decision-making. Every company recognizes interdependence. Every decision one company makes (be it price, product, or even promotion) impacts the competitor’s trade, resulting in counter moves. It leads to…

Managerial Economics

Price and Output Determination in Monopolistic Competition

05/11/202217/07/2023 Study Notes Expert No Comments

As there is product differentiation between firms in a monopolistic competitive market, a perfectly elastic demand is not available to the firm for its products. Each firm can determine its product’s price, and thus each firm is termed a price maker. Now, we will come to know about the price and output determination in monopolistic…

Managerial Economics

Monopolistic Competition: Characteristics, Benefits, Disadvantages

03/11/202202/02/2025 Renu Saroha No Comments

Monopolistic competition refers to a situation in which several companies sell different products on the market. “There is fierce competition, but it is not perfect. However, numerous firms offer identical products.” Companies cannot exert any influence discernible from the other’s pricing-output policy. So, monopolistic competition refers to competing among sellers that create close substitutes for…

Managerial Economics

Price and Output Determination Under Monopoly

02/11/202202/02/2025 Study Notes Expert No Comments

The demand curve for the company is identical to the demand curve for market services under the monopoly. Market demand curves tend to slope downwards as monopolists confront downward-sloping demand curves. To maximize profits, firms must operate at a maximum output level at which margin revenue and marginal cost are equal. Price makers are firms…

Managerial Economics

Ultimate Guide to Monopoly Market: All You Need to Know

29/10/202202/02/2025 Study Notes Expert No Comments

A market situation with only one seller and barriers for others to enter, products having no close substitute, cross elasticity of demand is low with every other product and no other firm producing an identical product is called a monopoly market. Having control over the price, a monopolist can sell his product at the price…

Managerial Economics