Managerial Economics
Returns to Scale
Returns to scale describe what happens to output when all inputs are increased together in the long run: increasing, diminishing or constant returns.
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Managerial Economics
Demand, supply, cost, market structure and the policy that shapes them.
Managerial Economics
The Law of Variable Proportions
When more and more of one input is added to a fixed input, total product first rises quickly, then slowly, and finally falls. A worked table shows the three phases.
Managerial Economics
The Production Function and the Four Factors of Production
The production function links inputs to output. Here are the four factors of production, land, labour, capital and entrepreneurship, with their features and rewards.
Managerial Economics
Production and Cost Analysis: Where to Start
Production turns inputs such as land, labour and capital into goods and services. Here is how firms make production decisions, the factors of production and the production function.
Managerial Economics
Market Equilibrium
Market equilibrium is the price at which the quantity demanded equals the quantity supplied. See how excess demand and excess supply push a market back to it, and what shifts it.
Managerial Economics
The Law of Supply, and What Shifts It
The law of supply says producers offer more at higher prices, other things equal. Here are the factors that shift supply, the types of supply, the exceptions and elasticity of supply.
Managerial Economics
What Supply Means
Supply is the quantity of a good that producers are willing and able to sell at each price. Here are its features, the law of supply and supply schedules.
Managerial Economics
Demand Forecasting
Demand forecasting estimates future demand for a product. Here are the types, the main techniques from surveys to the Delphi method, and how forecasts help a business.
Managerial Economics
The Exceptions to the Law of Demand
When a higher price does not reduce demand: Giffen goods, Veblen goods, price expectations, necessities and the other exceptions to the law of demand.
Managerial Economics
Movement Along the Demand Curve, and Shifts of It
Why a change in price moves you along the demand curve, while a change in income, tastes or other factors shifts the whole curve, with schedules and graphs.
Managerial Economics
The Types of Elasticity of Demand
The three main types of elasticity of demand, price, income and cross elasticity, with their formulas, the five degrees of price elasticity and the factors behind each.
Managerial Economics
Elasticity of Demand
Elasticity of demand measures how strongly the quantity demanded responds to a change in price, income or another factor. Here is the formula and why it matters.
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