Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain about Transaction Cost Theory?
The below model reveals market and institutions as a possible form of organisation to coordinate economic transactions. When external transaction costs are higher than internal transaction costs, company will grow. If external transaction costs are lower than internal transaction costs the company would be downsized by outsourcing. For illustration, Ronald Coase set out his transaction cost theory of the firm in 1937, making it one of the first (neo-classical) efforts to define the firm theoretically in relation to market. Coase sets out to define a firm in a manner that is both compatible and realistic with the idea of substitution at margin, so instruments of conventional economic analysis apply.
He notes that a firm's interactions with the market mayn't be under its control (for example due to sales taxes), though its internal allocation of resources is: 'Within a firm, market transactions are eliminated and in place of complicated market structure with exchange transactions is substituted the entrepreneur who directs production'. He asks why alternative methods of production (like the economic planning andprice mechanism), couldn't either achieve all production, so that either firms use internal prices for all their production or one big firm runs the whole economy.
What is Managerial economics according to Spencer and Siegelman Spencer and Siegelman: Managerial economics is "the integration of economic theory with business practice for t
Open Economy None of the three economies considered so far are engaged in trade with Foreign Countries. Such economies are often referred to as Closed Economies. In contrast
Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient
a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast
1. Prof. Thomas "Generally the term Monopoly is used to cover any effective price control, whether of demand or supply of services or goods; hardly it is used to mean a combination
Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment
Problem : (a) Describe inflation and discuss its origin using Classical and Keynesian theories. (b) Describe with diagram how can inflation occur in an economy with substant
(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that
Determine the Giffen goods - law of demand An exception to this law is the distinctive case of Giffen goods named after Sir Robert Giffen (1837-1910). 'Giffen goods' doesn't re
PROGRESSIVE TAX A progressive income tax system is one where the higher the income, the greater the proportion paid in taxes. This is effected by dividing the taxpayers' inco
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd