Commerce

The law of variable proportion states that keeping all other factors fixed, when the quantity of one factor increases, the marginal product of that factor will eventually decline.

The law states that as a consumer consumes more and more units of a specific commodity, the utility from the successive units goes on diminishing.

In economics utility is the capacity of a commodity to satisfy human wants. Utility of a commodity is its want-satisfying capacity.

Demand refers to the desire of a consumer to purchase goods and services and ability to pay a price for the goods and services purchased

Perfect competition involves large number of buyers and sellers with a single uniform price for the product.

Monopolistic competition there are large numbers of buyers and sellers which do not sell homogeneous products

The fundamentals of principle management were developed by French management theorist Henri Fayol (1841–1925). The principles of management are underlying factors for successful management.

A pure monopoly exists when there is only one producer in the market. There are no direct competitions

In oligopoly there are a small number of firms in the market. As per the norms, oligopoly consists of 3 -5 dominant firms.