Author: luna

Get the answer of: Why does the Monopolist Operate on the Elastic Part of the Demand Curve? A monopolist wishing to maximise profit produces the output up to that amount at which MC = MR. But it is said that no monopolist will ever fix the output for his product at any level where demand…

Ans. Since independence, a large number of State enterprises have been established and the State has been facing the problems relating to their administration. The various experts’ committees that were constituted to advise the government on the management of State enterprises have given divergent and over-contradictory views. Nevertheless, they have thrown some light on the nature…

Ans. Some of the important problems of the public sector enterprises stated above have been analyzed here and if these problems could be tackled, certainly we can expect a much higher rate of return on the investment in the public undertakings. i. Poor Project Planning: Due to several mistakes, flaws, and omissions in project planning, many…

Ans. Though both partnership and Joint Hindu Family firm are organized by groups of persons, there are some basic points of distinction arising from the different laws governing them. The following are the points of distinction between these two: 1. Partnership firm can only arise as a result of contract between the partners. But a Joint…

  1. There is no encouragement to work hard and earn more, because members who work hard are not properly rewarded and all the co-partners irrespective of the work turned out by them share the benefit of their hard work. 2. As “Karta” takes the responsibility to manage the firm, the other members of the…

  1. Every co-partner is guaranteed a “bare subsistence” irrespective of the extent of his contribution to the business. 2. There is a scope for younger members of the family to get the benefit of knowledge and experience of elder members of the family. 3. Members of the family are taught to work not only…

Ans. In India a large number of business are carried on in the shape of Joint Hindu Family (JHF) which are in essence individual entrepreneurs possessing almost all the advantages and limitations of sole proprietorship. A JHF comes into existence by the operation of law. If the business commenced by a person is carried on by…

  1. Single plant and 2. Multi-plant adjustments 1. Single-Plant Adjustment: If the monopolist operates on a single plant there may exist three possibilities – (i) If in the short-run the monopolist is incurring losses, he may make such adjustments in his plant as to stop losses in the long-run. He may have a less…

Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception on the concept of management. He introduced a general theory that can be applied to all levels of management and every department. He envisioned maximising managerial efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the…

Standard Costing is a method used to compare revenue and the standard cost with the actual result, to check the variance and its causes. It informs the management of the deflection and initiates correct measures for improvement. It can be defined as the predicted cost per unit of the product manufactured during a period, based…