What is Net National Product (NNP)? The net national product refers to the total market value of finished goods and services that are produced by both domestic and foreign citizens of a nation. The calculation is usually done for a term of one year. So, when we talk about NNP ... Read More

Introduction Liabilities are obligations of a company that is payable within a certain time period. Depending on the nature and time period, liabilities are divided into three types. They are – Current liabilities or short-term liabilities Long-term liabilities Contingent liabilities. Current liabilities or short-term liabilities are payable ... Read More

Introduction In order to understand what a floating exchange rate is, one must first understand what an exchange rate means. The exchange rate of a currency is the rate of exchange of the currency against foreign currencies (usually, it is compared with US Dollars). The exchange rate regime is adopted ... Read More

What is Marginal Cost? Mostly used in the manufacturing industry, marginal cost refers to the extra cost required to produce additional items. The marginal cost is calculated by dividing additional costs by the change in quantity. The calculation also includes the items that have already been produced and variable costs ... Read More

Introduction Marginal product formula helps businesses predict the demand and thereby produce just enough products according to market demand. Businesses are concerned with the market demand and want to keep production in sync with the market demand. The marginal product formula helps them to take production decisions wisely. Knowing the ... Read More

What is Price Elasticity of Demand? Price elasticity of demand shows what happens to price when the demand for a product changes. It is obvious that demand and prices are related to each other. When the price increases, usually, the demand for the product goes down. Alternatively, when the price ... Read More

What is Marginal Revenue? The increased revenue obtained from an additional unit’s sale of a product is called marginal revenue. The word marginal always expresses something extra; so in the case of revenue, it shows the extra revenue generated. Marginal revenue follows the law of diminishing returns. According to the ... Read More

What is a Demand Curve? The demand curve is a graph that shows the relationship between the price of and the demand for a commodity in the market. The price of the good is usually shown on Y-axis while the demand for the product is placed on the X-axis. This ... Read More

Introduction: What is a Market? A market is a place where buyers and sellers can meet to exchange items. There are physical markets such as those containing retail stores and virtual markets such as online stores. In the case of virtual markets, there is no physical interaction between the buyers ... Read More

Introduction: What is a Market Economy? A market economy is a type of economy where demand and supply control the marketplace. In a market economy, there is minimal government intervention whereas the price and quantity of goods are determined by the demand and supply of products in the market. A ... Read More