Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

FORMS OF MARKET-OLIGOPOLY

OLIGOPOLY COMPETITION

Meaning of Oligopoly :Oligopoly is the market situation with a few seller who competes with each other. It is a form of imperfect competition in which there are only a few firms in the industry producing either an homogenous product or producing close substitutes for one another. The number of firms is more than one but is not so large that any one seller be in position to take decisions regarding his price,output,product.

Features of Oligopoly
a)Small number of big firms :Oligopoly market is the one in which a small number of big firms dominate the market for products.There is high degree of market concentration.
b)Degree of interdependence:In Oligopoly,each firm is so big in size that quite often iy has global presence ,selling its product across all parts of the world. There is very high degree of interdependence among the rival firms with regard to their price and output policy.Price and output of one firm depends on reaction of rival firms in the market .
c) Demand's curve: It is not possible to determine firm's demand curve under Oligopoly because no specific relationship can be established between output and price.Thus, when firm lower its price,the demand for its product may not increase because rival firms may lower the price proportionately greater.
d)Entry barriers :There are various barriers to the entry and exist of the firm.these are created largely through patent rights and are almost similar to those under monopoly.Because of these barriers ,the existing firms are worried about possible erosion of demand in the near future.They continue to earn extra normal profits in long run also.
Patent rights are the official recognition of innovators of new product.These are related to some innovative product or innovative technology which cannot be copied by others.Such rights deter the entry of new firms.
e)Non-Price competition :Under Oligopoly,firms tend to avoid Price comprehensive .Instead,they tries to focus on Non-Price competition.
f)Formation of cartels : Oligopoly firms also forms cartels . A cartels are a formal agreement among the firms to collude and avoid competition. Collectively they try to earn monopoly profits  .Under it, output and pricew are fixed by various firms as a group sometimes leading firm in the market is accepted by cartel as pricé leader . 

Comments

Post a Comment

Popular posts from this blog

Tokenization

Tokenization  Tokenization is the process of turning sensitive data into non-sensitive data called "tokens" that can be used in a database or internal system without bringing it into scope.  •It can be used to secure sensitive data by replacing the original data with an unrelated value of the same length and format.  •The tokens are then sent to an organization’s internal systems for use, and the original data is stored in a secure token vault. •The purpose of tokenization is to swap out sensitive data—typically payment card or bank account numbers—with a randomized number in the same format but with no intrinsic value of its own. •Tokenization is the process of removing sensitive data from your business systems by replacing it with an undecipherable token and storing the original data in a secure cloud data vault.  Token will be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and p...
Post a Comment
Read more

Role of capitalism

ROLE OF CAPITALISM IN DEVELOPING ECONOMY Capitalism is that part of the economics where there is no role of government agencies. The sole supe power of capitalism is in the hands of private owners. This means that if private is working on the behalf of government, instead of social welfare, their main objective is to have profits. Features Lack of intervention of government. Role of private firms. Role of price mechanisms. Advantages Encourages innovation Efficient firm incentives Consumers can choose services of their choice. Prevents government from interrupting. Creates climate of innovation and economic expansion. Helps in increasing GDP. Disadvantages Firms can gain monopoly power. Externalities damages the environment. Prone to boom and bust in the economic cycles. Inequality creates social division. Capitalist market crashes causes economic downturn , uneven business cycles. There is difficulty in mobilising unprofitable sector into profitable sectors. By taking advantage of poo...
Post a Comment
Read more

Investment Multiplier

INVESTMENT MULTIPLIER The number of times by which the increase in ∆Y exceeds the increase in investment is called as Investment Multiplier.  Investment Multiplier or output multiplier refers to the number of times by which the increase in output/income ∆Y exceeds the increase in investment ∆I. It is measures as the ratio between change in output /income and change in investment.                                      k = ∆Y / ∆I Where k is the multiplier. Relationship between Multiplier and Marginal propensity to consume (MPC) There is direct relationship between Multiplier and MPC . Higher the value of MPC ,higher the multiplier .                   K =1 / 1- MpC This is because of the given reasons : a)Additional investment means additional expenditure in the economy, additional expenditure means additional income . b) Higher the value of MPC ,...
Post a Comment
Read more