Linear isoquant
A Linear isoquant implies perfect substitutability between the two inputs K and L. The isoquant AB indicates that a given quantity of a product can…
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Least cost combination
In order to determine the best combination of capital and labor to produce that output, one has to know the amount of finance available to…
Fixed factor-proportion or L-shaped isoquant
When a production function assumes a fixed proportion between K and L, the isoquant takes ‘L’ shape. Such an isoquant implies zero substitutability between K…
Multi-product Pricing
Almost all the firms have more than one product in their line of production. Even the most specialized firms produce a commodity in multiple models,…
Transfer Pricing
The large size firms divide their operation very often into product decisions or subsidiaries. Growing firms add new divisions or departments to the existing ones….
Average cost Pricing
Average cost pricing is also is also known as “make-up Pricing” or “Cost plus pricing” . Average cost pricing is the most common method of…
Profit Constraint and Revenue maximization
According to Baumol, every business firm aims at maximization it sales revenue (price x quantity0 rather than its profit. Hence his hypothesis has come to…
What is marketing plan?
A marketing plan contains information about your company and its products, marketing objectives and strategies, as well as how you will measure the success of…
What is green marketing ?
Green marketing, which is also called environmental or ecological marketing, consists of all activities designed to generate and facilitate any exchanges aiming to satisfy human…
Why is green marketing popular?
There are several possible reasons for firms increased use of Green Marketing: Organizations perceive environmental marketing to be an opportunity that can be used to…