In this article we will discuss about:- 1. Definitions of Capital Formation 2. Process of Capital Formation 3. Factors 4. Rate 5. Reasons for Slow Growth Rate 6. Suggestions. Definitions of Capital Formation: The capital formation actually signifies a very important aspect of economic development. This means making and increasing of more capital goods, such as machines, tools, factories, buildings, raw [...]
In this article we will discuss about:- 1. Meaning and Definitions of Capital 2. Characteristics of Capital 3. Functions 4. Examples 5. Importance. Meaning and Definitions of Capital: Capital is defined as "All those man-made goods which are used in further production of wealth." Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, [...]
Producer’s Equilibrium: MR-MC Approach, Perfect Competition and Diagrams! Conditions of Producer's Equilibrium – MR-MC Approach: Producer's equilibrium is often explained in terms of marginal revenue (MR) and marginal cost (MC) of production. Profit is maximized (or a producer strikes his equilibrium) when two conditions are satisfied - (i) MR = MC, and (ii) MC is rising (or MC is greater [...]