Introduction In the study of microeconomics, pricing decisions made by firms are central to understanding market behavior. Under conditions of monopoly or market power, a seller is not bound to charge a uniform price for a product. Instead, the seller may charge different prices for the same commodity in different markets or from different consumers….
Introduction In the study of microeconomics, the concepts of Average Revenue (AR) and Marginal Revenue (MR) hold significant importance for analyzing the revenue behavior of a firm. These concepts help in understanding how much revenue a firm earns per unit of output and how revenue changes when output increases by one unit. The relationship between…
Introduction In economics, price elasticity of demand (PED) is a crucial concept used to analyze the responsiveness of the quantity demanded of a good or service to changes in its price. Businesses, policymakers, and researchers rely on elasticity measurements to make informed decisions regarding pricing, taxation, subsidies, and market regulations. The concept of elasticity goes…