G2 ats Whar % angl 7 deyined 05 & siistained een ation? for 9 goods and services in a outline the proses Tnjlation cs) genera level a prices county, and! is Pt see as an annual percentoge Change - under conditions Ob - ingiation + the press of things wise CNET time’. Puke aigerenty 06 inplation ses, every TP yp. buys % amaller perentages of & geod: ov 3CO when pue ‘ise, and of ole manny when the value Ob mony por your [ Iman inplation- j oy the pusiners cycle > asticity Oo dernand aes im price and codeG4) explain the law Supply: A Law 4 supply stares thake ohey pactors rere | emstant, pace and quantity supplied Cie good a | aeated to each other. In other WOdd , , dive Ucly | when the price paid bY buyers fot goed. is | Yen supplic7s increase the Supply oy thar. good me market : ile a 8) Define Oppustunity cost. A) opportunity cess reper +0 the costs Oh | best ollennabye poregme. @ whol oe Explicit and inmplicit Costs. A) explicit cess: Gxeplicit Cals one also called ns | our-ob- pocek Cost take involve cash payments |dmplicit ceses : Omplicit Coss axe alo Caled opus costs Which don'é fhvolwe pay | on they are not actually incurred - Ext 9 eon capita, faving in temned Ob ealAMd SSe [Lean siensision and “rene of een Baildlias 1) Explain the adua : goog ive sole propictorshp. OF Rea A) Advantages «+ t ee es “ . > Ftd cot Ona! {ees tty custome .divetlyy-rs) Prompt decision- making - u) High degree Of Hexibility. 5) Secrecy ' 6) low Tate Of taxation. 4) Divect Motivation. 8) Toto Conbol. ; |) Minimum interprence pom government | 10) Tromp ability . “Desaduantoges: “1 Onbimited uabiuty 2) Limited amounts of @pitat. | 3) No division aq alow. 4) Uncertainty: , : | 5) tmadequate He growth and expansion . 6). tack od speci align 4) Moe one a 2) Explain brietly une chonaderistics ©} goad demand yreastirg A) Good demand jot casting os semat clasvacttrcoh ACCUHaLY 1 ; is acute enovgh to help with i ear Qlocaki@an. | Trmetirws * cone f s ‘A 9003 yorecaae peor pierce when its so Wat O company “an espend to| changing waarkek Conditions quickly, | Mans pantnoy : Planners Should be able to undérstand and | tryst automated push. | SLalability : | The Sohtware should be able to lundle lange | data Sls and provide por catowlations. | Flexibility + | The softwar shoud bt able to create | yorecst at dibjerwnt bwels of granularity. | Integvasion : | | The software should be olole. to integrate with od Supply chain planning tools and | Sysierns- | | Data Sources = , ghould be alle to incorperate The Sobtworte both fnrernal and exiernat data Sowrttes- 3) Explain the production qunction With two vosioole | input ; § , : | A) prod yon guncien vith twe eal Ule gS | isoqvent hoe its Cigin from two words | 0 de w quale? . Ou ieiga Gt? werd Meaning . Ore gant” ts a Latin werd meaning "quankiy’ ie means equal quantity ¥ HOA ne curve ts | also talled as iso -prdduct an 1800¥0" ee oe 4 Ann ene SS.7 Trdifyunce cwwe . ' 4 Tsquont & O& cre that represents varios | Cornbinakions Of two input fates which yield same | qvantity of output ; For example} Tn rhe below table, Combination . Bepresent 4 unit tapitol and 10 units a bebo ard prices to untlg ch a periude: AU Ohet combinations tn the fnple ane @aumed bo ylid te same gMenecateur a gmduch Say 10 units by emplaying any one a he aliemotive combinations G the two favs labour ard capital - G we plot a nese : Combinations or & paper and join them, we wil agk A curve Cold So-quant Curve as Shown petow- ~< [combination (apitad 5 A a lounis) | ? B s | gee e | ae a i a a ls ' \ a) 4 wy en the xeaKis and \Capitad is onthe se ig tne Wokuant, Curve pohich shouss augearaue ‘combinations, A. B,c ,D , which Can» se HS Ob & product: ' produce 10 niIS0COSTS: + Tsotost is A cunve that represents Cominaiions — e two ‘inputs’ Which ca nia eeiey | with Oven amount O} total Money. fanaa ¥TSocost means Same coer. # Suppose total amount 1 Rs.1000. labor cest is Rs HO pea unit, (apitat Ct ‘is Rei doo pes unié. Alleanative LOmbiviations ave A» pollen? | eens s.. 2 %) |Cominasion| Capitol(s) Latbor(t)| Cext | = | bose ae). Ta BOE Cur | 4] 20, | 1000) ty D yah Aes ¥ T v8 cy ) 8 2 ivicl \Si, | (QOOM meee 1 7 at E ~~ ils S 3 | 3 ee ae “10 | 1000 =H : , | I (eee: 25 es Units Tabs + plotting these vals on a graph, joining the points A,B,C D, then, we Will have an soc Line. $y the wel OO production changes , the total Cost changes and Hud the jgocebt Cuave Moves vawards, ond vikveTsa. 10 Mantes :- 1) whot i Company ? Explain it jpeatwes, advantages ard disadvantngts. ‘ A) A Company is a leat entity, alowed by wgaeee, i is le, as sane! 0 | which pewnild a group of porte oe ardent o*garigatin lopply to the goranment —_— on pwauing Set Lagat sights which ane to be Created, Which cpa yous Cojectives , and eMpouwrned with C1 CEL RD A, noe aj usually Only ternved rack cir ea | es hive. employers 40 laniaandl Key Feakures of a Company * Separate Legal Entity: A company i considered lgal peaen in it den: aight. Lb Can, own propurty , enter intd COntAUs , Sue; and pe Sued. + Limited Hobility: Shareholders are generally nok personally Viable for the debts or obligations of the company - Their Liability is limited +0 the amount +hey have invested in thé Company.’ + Perpetual Succession : A Company can icentinue to: exist | indepinitely, even ih 11 owners change- » Centralied Management: Companies typically have a | pond of divecttmS 61 other governing body’ Hab = = | maxes decisions: and onetser the companys operations + Frandprability Of Qunerships Ouonership Of a ‘company | tan be Casily ranspuvud naman the sale Bf Shares. Advaritag’s ch a Company * ity aa : Lined ‘Liability ¢ Padkecks pylsonal, arsets Hom Lusinnys - Accaas “eo Capital + Companies Can yorse capital lay issuing | shaves on bonds. , be , } | + Perpetval Exiokenw : the Company Can continue to qprate even ih Owners range + Proigassionat rN 0ge : Companits aie often Seen ad: mere Creajele: ‘ond trusboortnyi iam Sole preprrie tore ilies portnonsipS: 7 bf +Tax Benepi le Companies MAY oe Uigivle per couain tax 9 a[ deductions Ord. Credits: * Oncreasta Regulatong a ane to mee regulations and “empliante requirements has Sole proprictorwnips ot partrwdhips. . oe » Double Taxation’: In many jwudsdicions , | Conpantes axe taxed On their profits, and Shareholders ate taxed on dividends trey Te ive. 8% + Complexity: Setting up and manoging @ Company “Gn mere Complex and. expensive tan olun wines Shui - Love of Conbol: Shaneholdtta may have les control bvex dhe Company's .opuriationds than bole proprierss on Posnens. | + public Scrutiny : Public Companies ane Suljede £0! qr e public scrutiny arid. desUisete TeQUivEMeNts : - a et 2) Wak & supply’ anatysis 2 Explain is determinants. , A) In etoromica. we have “b0o perdes 2 the produce, who makes things, and the CLONEWNEL Who buys them Supply 15 the producer's willingness and ability.to Supply a given good ab various pritt points. holding Qk else constant- An increase in price ui L increase ors vevenues, 50 they be willing to Supply mere ; 2 decrease in price will rede KEVEN UES, and 80 producers will Supply wy. : | Determinants a Supply Number oF Seles : gneqease in numbed of Sellerd wih increase SuPPIY and shipt the Supply Cunme Tighe ands § wnvetas ckevérue in number, of Sed will» dae the supp ly- 2) pres OG Reowres t increas the pian at tag ara ail” : | ed and vik Veua. since probit is a majo4 | ene IP’ produars to Aupply goods and servis) INCVearE in prP}iKS increases the supply and decveasxe in props reduces He Supply. |3) Taxes And Subsidies : ayes reduce profi ts. thereto | Increase in 40x teduce supply uUNne1eas decrease in taxes incre are Supply: H) Technology : Improvement in’ technoleqy enables” mbes | elticient production % gods and Borviees + THUS | yeducing tne production cesls and inereasing’ the prof r 5) Suppliers’ Expectations : change in expedario Of Supplie7S about yee pow OF O produce Sosa senvice MAY ayere Hnei i ry Uument Supply. FOn, example when janie Toupeue +e. ecture, price oh A CHOP, tO Increase , “ney wilk withhold. Hey, 1g bot jure to Benefit pron higher. | paw price thud! pear) th, S47, g Paes ob Related Products : Fivms wohich ou O fo maruyauure are Will He ‘Shi laters on to a cE Me price oF i ogee Tigges orn products was cau a. rtduction’ of Suppl hich wre produud epee « Fon ekaw | a. yam ig OU! eo to manuqpone oxy che aaaT- — bas. As A Teult, the supply of urket bats be reduced - |) Pais & Joint Products : when two 61 mete gods one produced in a jont PMU% and the price Of any of the potduct, Increases, the Supply O& au the) Joint produce, wik be inereased and vice yersa- . | Fer example increase in price ob Meat will ‘increase the. supply Or Wathen. 3) &ploin the law’ of Tetuun to scale. $n the tong-tem , 0 factors Can be changed. — |} unen alk pots oa tnpulls are Charged , we é Study rerueurs t9 Scale. : tia |¥ An increase in the scale means ‘that all inputs | | oh factors Ott increased in tne as (proportion. Ds 2) AU units oh factors Oe, homogeneous . 2) Retunnd are measuxed, in Physica | teams. * When a bam expands | 1%! Bcode fincreoses au 1% Ti poopertionality , ote there Q porte pori bilities. ay é 1) Low , Oh. increasing TetuUMnNs to Stale + iol 9 a ah a percentoge increase in the Output is { +h “pre. PUentage INCVEAALS fin inputs , i 4 extaaiee | Tre» ee WY A 87. NcreaLse in Tnpuss! Y Jo 7> increase IN the oLupule, a e attain increarcd. returns, mproduction Facto _ 7 change in output Co-efyicient => change in. input |e PEC DA, it Means Increasing retunirs to scale j ‘ ‘ ¥ tp PFC =1 1b MAN Constant vetwurs tO S(ole - | gap PFC <4 ‘ib Means decreasing vetunnes to dCalée. [2) Law ‘constant rekwuns to Scale | y ; 7 |* Th a percentage increase in the, output is equal to the percentage increase in Inpwrd , there arte Constant retains to scale: | u % Fou example: gph A S%7/6 increate in ina ae a 5/. incase in the output, a iam 1S Said to atain | Constant Tetunns. DDlaw decreasing retuans td Scale - Tha percentage | increase Tn the output & Www Man the perentege increase in inpubs, Here Ore decreasing VerUnns to” salen 3 + Fon example + Th a 107. increase in NIE | inpuks resus in 57. INcTease in Ihe © A | tiem i said to otkain decreasing yetwuns. The yellowing toble iUushaks these (one é 4. Pom the below tolele TE bt cheasy tar ne unit coe eS Of labor, the birm produces 5O Units Of CUEPUE- Loken the inputs oe douled (2 NIH O CAPIFOL and 6 Units of labs), the ouput 104 gene UP 120 uni Thus when inputs ane increased PY 1007, the output has o butpuéT _ _ | increased by HOY. - Tat is Output has ii , NCreared by move Han double: This & governed by law of inataring xzetwins to scale. 2. When the inpuls are panther doubled, the hos doubled. This governed bby law ©} Censtant! vetunns to ale- 3-uwhen the inputs pevtner dowbled . tre output nos inatared by only CO7o- This iS goveuned by Jaw Of decreasivg retuing +O alate. fapitat| Loben| 7° O output |% Of oes Cin units) Lin units) ie al Go units Bhai ae Wapplicalele | ees alae > ae es 2 6 100 | 120 | (HO [Law ofinerenaing rehung b — to Sale| \\ 4 | 12 | too | 240 | 100 laws ef Constant reba! |e saa : {to Sale. | % | 24 | 100 | 360 | 5p" |laue of decreasing | | | 5 Sl yetunnd tp scale, ., 5