In this article we will discuss about the equilibrium of a multiproduct firm, explained with the help of suitable diagrams. Introduction to Equilibrium of a Multiproduct Firm: Let us consider the simplest case of a multiproduct firm in which a firm uses a single input X for the production of two goods, viz., Q1 and Q2. The firm's production function [...]
In this article we will discuss about the short run and long run equilibrium of the firm. Short-Run Equilibrium of the Firm: The short run is a period of time in which the firm can vary its output by changing the variable factors of production in order to earn maximum profits or to incur minimum losses. The number of firms [...]
In this article we will discuss about the Aggregate Demand Curve and Aggregate Supply. Aggregate Demand Curve: The aggregate demand curve is the first basic tool for illustrating macro-economic equilibrium. It is a locus of points showing alternative combinations of the general price level and national income. It shows the equilibrium level of expenditure changes with changes in the price [...]