Quartiles: Individual Series, Discrete Series and Continuous Series
Dr. Swati Gupta
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Pigou Effect on Wage Cut and Full Employment
Pigou Effect on Wage Cut and Full Employment A renowned neoclassical economist, A.C. Pigou, suggested a cut in wage rates in order to remove huge and widespread unemployment prevailing at the time of great depression during the period 1929-33. According to him, under free competition, the tendency of economic system is to automatically provide full employment in the labor market and if there is unemployment in the free economy, then there are two reasons of it- first , rigidity in wage structure and second , interference in working of free market economy. For example : Government and trade unions of workers interfere free working of the capitalist economy and artificially keep the wage rates at high levels then: High wages → high cost of production → price rise → decrease in demand of goods → supply is more than demand → decrease in demand of labour → unemployment. He expressed the view that if the wage rates were cut down, demand for labor would increase so that all...
Say's Law of Markets - Notes
Say's Law of Markets An early 19th century French Economist, J.B. Say, states that "supply creates its own demand." The logic behind this law is that supply of goods itself generates sufficient income to generate a demand equal to the supply of goods. This is how supply creates its own demand. In its original form, the law is applicable to a barter economy where goods are ultimately sold for goods. Therefore, whatever is produced is ultimately consumed in the economy. This law can be explained in the context of both a barter system and a monetized economy. Barter economy where goods are ultimately sold for goods. people tend to specialize in the production of goods or services which they can produce relatively more efficiently. When they offer their produce in barter for other goods, they create demand for other goods. For example, a farmer offers his surplus produce (say, wheat) to the weaver in exchange for cloth. Thus, the farmer creates demand for cloth. The weaver ...
Median in Individual and Discrete Series
Median Median is defined as the middle most or the central value of the variable in a set of observations. It is the value of that item which divides the series into two equal parts, one half containing values greater than it and other half containing values less than it. Therefore, we have to first arrange series in ascending or descending order before finding the mean. Median is a position average and the arithmetic mean is a calculated average. Individual series - in this case, we first arrange the given data in ascending or descending order of their magnitudes. Dr. Swati Gupta
Price Leadership- Meaning, Types and Price-Output Determination Under Low cost Price Leadership and Domanant Firm Price Leadership
Price Leadership Price Leadership: Price leadership is an important form of collusive oligopoly. It takes place when there is only one dominant firm in the industry, which sets the price and others follow it. Sometimes, an agreement may be developed among oligopoly firms of an industry to assign a leadership role to one of them. There is a tacit or formal agreement among the firms to sell the product at a price set by the leader- firm of the industry. If the products are homogeneous, a uniform price is set. In case of differentiated products also prices can be uniform. If there is any change in price, the leader-firm announces from time to time, and the other firms follow him. Price leadership works effectively when the products are homogeneous and all the firms have identical cost curves. There are various types of price leadership. 1- There is the barometric price leadership in which there is no leader-firm bu...