Alisha Mahajan is teaching live on Unacademy Plus
ECONOMICS Cournot duopoly model-1838 Bernard duopoly model- 1880 - Edge worth duopoly model- 1897 Stackeel duopoly model- 1933 Chamberlin duopoly model- 1934 - Sweezy duopoly model- 1939
- Neumann Morgenstern game theory model- 1944 Baumaul duopoly model- 1959 Father of economics- Adam smith Originator of law of demand- Alfred Marshall - Revealed preference theory- Paul Samuelsson Cardinal utility/ neo classical approach- Alfred Marshall
Ordinal utility/ indifference curve- F Y edge worth, vilfredo Pareto, EE Slustky, J R Hicks and RGD Allen Indifference curve analysis is also known as iso utility curve or equal utility curve and for producer it is iso quant curve. - Budget line is also called price line, consumption possibility line and iso cost line. Consumer equilibrium is said when there is a tangency between the budget line and the indifference curve Price discrimination-A C pigou
- Free entry & exit/ factor mobility concept- Adam smith Exception of law of demand- Beham - Perfect competition is known as Myth Imperfect competition- John Robinsorn Kinked demand curve- Paul sweezy in 1939 Consumer & producer surplus- Alfred Marshall - Material requisites well-being- A C pigou
- Positive impact of monopoly- joseph Schumpeter Wealth of nations- Adam smith Composite demand- the demand of commodities or goods that provides multiple uses. - Demand- willingness to purchase+ ability to pay - Substitute goods like tea and coffee Complementary goods is also known as jointly demand goods. Such as car petrol.
Characteristics of demand curve- 1) downward sloping 2) From left to right. 3) Negative slope - There is an inverse relationships between the price of goods and the quantity demand of the goods in law of demand A family of indifference curve is called an indifference map Slope of indifference curve is known as Marginal rate of substitution
Transactions cost is given by Ronald coase - In Normal goods price effect- income effect + substitution effect In inferior goods substitution effect- price effect + In giffen goods income effect- price effect + Law of demand is violated in giffen goods. income effect substitution effect Opportunity cost is also known as next best foregone cost, sacrifice cost, transfer earnings and alternative cost.
-Explicit cost is also known as out of pocket cost, accounting cost and direct cost Implicit cost is also known as imputed cost - Cost of production- explicit cost+ implicit cost. - Fixed cost is also known as supplementary cost, overhead costs, unavoidable cost or indirect cost. - Variable cost is also known as direct cost and prime cost.
-Fixed cost cannot be zero even when production is stopped. Accounting costs are explicit cost - Economic costs are both explicit cost and implicit cost. - AFC (average fixed cost) is also known as rectangular hyperbola Effective demand backed by purchasing power and willingness to spend.