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1. Cost Cost refers to the expenses incurred by a business in the production of goods or services. It includes payments for resources such as labor, raw materials, machinery, rent, etc. 2. Implicit Cost Implicit costs are the opportunity costs of using resources owned by the business itself instead of renting or selling them to others. These costs do not involve actual cash outflows but represent the benefits sacrificed. Example: A person runs a business in a building they own. The implicit cost is the rent they could have earned if they had leased the building instead. A business owner working in their own company without taking a salary has an implicit cost, which is the salary they could have earned working elsewhere. 3. Explicit Cost Explicit costs are the direct, out-of-pocket expenses that a business pays for production. These involve actual cash payments. Example: Salaries paid to employees Rent for office space Payment for raw materials Electricity bills 4....

  Direct and Indirect Expenses In accounting, expenses are classified into two main categories: Direct Expenses and Indirect Expenses . 1. Direct Expenses Direct expenses are those expenses that are directly related to the production or acquisition of goods or services. These expenses vary with the level of production or sales. Examples of Direct Expenses: Cost of Goods Sold (COGS) : This includes the cost of raw materials used in manufacturing, wages of workers directly involved in production, factory overheads, etc. Wages of Production Workers : The wages paid to employees who work directly in the manufacturing process. Freight and Shipping Charges : Costs incurred in transporting raw materials to the factory or delivering finished products to customers. Raw Materials : Cost of materials directly used in the production of goods. Factory Supplies : Items like factory tools, lubricants, and raw supplies consumed directly in the production process. Example: If a comp...

  Banking Systems and Monetary Policy in Macro Economics 1. Central Bank (सेंट्रल बैंक) Features and Functions: Monetary Authority: The central bank controls and regulates the money supply and interest rates in the economy. Currency Issuer: It is the sole authority to issue national currency (e.g., Nepal Rastra Bank in Nepal). Regulation of Commercial Banks: It oversees and regulates commercial banks, ensuring they adhere to financial rules and regulations. Bank for the Government: It acts as a banker to the government, managing its accounts and facilitating payments. Control of Inflation and Deflation: By adjusting interest rates and implementing monetary policy tools, it manages inflation and deflation. Lender of Last Resort: It provides emergency funds to commercial banks in financial distress to prevent systemic failures. Examples: Nepal Rastra Bank (NRB), Reserve Bank of India (RBI), Federal Reserve System (USA). 2. Commercial Banks (व्यावसायिक बैंक) Featur...

  Graphical Representation of TR, AR, and MR with Detailed Explanation To understand Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR) more effectively, we will make a schedule (table) and then plot a graph (curve) to visualize their relationship. Step 1: TR, AR, and MR Schedule (Table Format) Quantity Sold (Q) Price per Unit (P) Total Revenue (TR = P × Q) Average Revenue (AR = TR ÷ Q) Marginal Revenue (MR = ΔTR ÷ ΔQ) 0 10 0 - - 1 10 10 10 10 2 10 20 10 10 3 10 30 10 10 4 10 40 10 10 5 10 50 10 10 6 10 60 10 10 Key Observations from the Table : TR (Total Revenue) is increasing as more units are sold. AR (Average Revenue) remains constant at Rs. 10, which is equal to the price of the product. MR (Marginal Revenue) is also constant at Rs. 10, meaning each additional unit sold adds Rs. 10 to the total revenue. This is a perfectly competitive market , where AR = MR = Price . Step 2: Graph ...

  Concept of Market, Total Revenue, Average Revenue, and Marginal Revenue 1️⃣ Concept of Market (बजारको अवधारणा) 📌 Definition: A market is a place where buyers and sellers interact to exchange goods and services. It can be a physical place (like a vegetable market) or an online platform (like Amazon). 📌 Key Features of a Market: Presence of buyers and sellers. Exchange of goods and services. Price determination based on demand and supply. Can be local, national, or international. 📌 Example: A vegetable market where farmers sell their crops to consumers. Online marketplaces like Amazon or Daraz where people buy and sell goods. 2️⃣ Concept of Total Revenue (कुल आम्दानी – TR) 📌 Definition: Total Revenue (TR) is the total income a firm earns from selling a product. It is calculated as: T R = Price per unit × Quantity Sold TR = \text{Price per unit} \times \text{Quantity Sold} TR = Price per unit × Quantity Sold 📌 Example: If a ...

  Differences Between Monopoly Competition and Perfect Competition 1. Monopoly Competition (एकाधिकार प्रतिस्पर्धा) vs. Perfect Competition (सिद्ध प्रतिस्पर्धा) Monopoly and Perfect Competition are two extreme market structures in economics. Monopoly refers to a market where only one seller exists, whereas Perfect Competition refers to a market where many sellers sell identical products. 1️⃣ Monopoly Competition (एकाधिकार प्रतिस्पर्धा) – 15 Key Points with Examples In English: Definition: A monopoly is a market with a single seller and no close substitutes. Example: Nepal Electricity Authority (NEA) is the only provider of electricity in Nepal. Number of Sellers: Only one seller controls the entire market. Example: Google (in search engines), Microsoft Windows (in PC OS). Number of Buyers: Many buyers purchase from the single seller. Product Uniqueness: The product has no close substitutes. Example: Patented medicines by pharmaceutical companies. P...

  Scarcity and Choice (अभाव र छनौट) In English: Scarcity means that resources (like land, labor, capital) are limited, but human wants are unlimited. Since we cannot have everything, we must make choices about how to use resources efficiently. Example: A farmer has limited land. He can either grow rice or wheat. If he chooses to grow rice, he cannot grow wheat. This is an example of making a choice due to scarcity. In Nepali (नेपालीमा): अभाव भन्नाले स्रोतहरू (जस्तै जमिन, श्रम, पूँजी) सीमित छन्, तर मानिसका आवश्यकता असीमित छन्। त्यसैले, सीमित स्रोतहरूको प्रयोग कसरी गर्ने भन्ने निर्णय गर्नुपर्छ। उदाहरण: एउटा किसानसँग सीमित जमिन छ। उसले धान वा गहुँमध्ये एउटामात्र उब्जाउन सक्छ। यदि उसले धान खेती गर्छ भने गहुँ उत्पादन गर्न सक्दैन। यो अभावका कारण गरिएको छनौट हो। Opportunity Cost (अवसर लागत) In English: Opportunity cost is the value of the next best alternative that is given up when making a choice. Example: A student has 2 hours. He can either study for an exam or watch a m...

  सूक्ष्मअर्थशास्त्र र समष्टिगत अर्थशास्त्र बीचको अन्तर अर्थशास्त्र दुई प्रमुख भागहरूमा विभाजन गरिएको छ: सूक्ष्मअर्थशास्त्र (Microeconomics) – व्यक्तिगत उपभोक्ता, उत्पादक, उद्योग र बजारहरूको अध्ययन गर्छ। समष्टिगत अर्थशास्त्र (Macroeconomics) – समग्र राष्ट्रको अर्थतन्त्रलाई अध्ययन गर्छ, जसमा आर्थिक वृद्धि, मुद्रास्फीति, बेरोजगारी, सरकारी नीति, व्यापार नीति आदि पर्दछन्। १. सूक्ष्मअर्थशास्त्र (Microeconomics) को ३० बुँदा र विस्तृत व्याख्या 1. परिभाषा (Definition) सूक्ष्मअर्थशास्त्रले व्यक्तिगत उपभोक्ता, व्यवसाय र उद्योगहरूको आर्थिक गतिविधि अध्ययन गर्छ। यसले साना इकाइहरू कसरी निर्णय लिन्छन् भन्ने बुझ्न मद्दत गर्छ। 2. अध्ययनको परिधि (Scope of Study) यसले व्यक्तिगत बजारहरू, उत्पादन र मूल्य निर्धारण, उपभोक्ता र उत्पादकहरूको व्यवहार अध्ययन गर्छ। 3. प्रमुख तत्वहरू (Key Elements) यसमा माग (Demand), आपूर्ति (Supply), उत्पादन लागत (Cost of Production), उपभोक्ता व्यवहार (Consumer Behavior), बजार संरचना (Market Structure) आदि समावेश छन्। 4. मूल्य निर्धारण (Price Determination) स...