When the firm produces in large scale it will experience benefits of mass scale production and as a result average cost per unit will reduce up to a certain level of output. This reduction in average cost per unit is called as economies of scale. Economies of scale occur in long run cost behavior. Economies of scale can be in 02 different forms: 01. Internal economies of scale 02. External economies of scale. Internal Economies [...]

Since it’s specifically difficult to identify the reasons for or factors that contribute to inflation, many theories and concepts have been introduced for this purpose. Each theory tries to clarify the supply and demand factors that result in the creation of an inflationary situation. The main theories of inflation are as follows, Quantity Theory of Money Keynesian Theory Monetarism Structuralism Quantity Theory of Money This refers to the identical or equal relationship between national income [...]

What is EU crisis? EU crisis is the deflationary and fiscal deficit situation which is currently taking placing at European Zone which is identified as a side effect of the global financial crisis 2008/2009. The real asset prices of EU zone is decreasing drastically and the fiscal deficit (deficit in the public budget) in many countries has increased leading to increase in public borrowing level of the EU countries.

Inflation can be broadly identified as a continues increase in the general price levels of a give country, over a certain period of time (relatively longer durations or period of time and countries in general price levels). In simple terms it is the persistent rise in the general price levels. However a temporary price increase or an increase in the prices of a few goods will not amount to inflation. Such situations will not amount [...]

The BRIC economies refer to Brazil, Russia,India and China as a combined entity which was form with the intention of recovering the world economy from its current slowdown. Chinese Economy Performs Well. While all the leading economies in Europe and USA collapse, there has been a sudden emergence of the East Asian economies such as China. The point to note is that when corporate giants of USA and Europe collapsed, Chinese firms were buying stakes [...]

The current buzz word for developed countries and developing economies is the “Financial crisis”. The whole word speaks about current financial crisis and its outcomes. What is this financial crisis? Due to this financial crisis leading economies have collapsed and developing economies has started to rise in the world economic competition. It was surprising that how some developing economies such as China and India rose during the financial crisis and many scholars still hold the [...]