ANONYMOUS EVO!

Friendship is one of the most valuable assets that we create in our lifetime

-unknown

A friend is someone who knows the song in your heart

 and can sing it back to you when you have forgotten the words.

-Unknown

A friend is a present you give yourself.

-Robert Louis Stevenson

A friend in need is a friend indeed.

-Latin Proverb

“Many people will walk in and out of your life, 

but only true friends will leave footprints in your heart” 

― Eleanor Roosevelt


GROUP MEMBERS

MOHD RIDUAN BIN HASHIM - PDA 1506054
MUHD NUR ADLI BIN ZAINURI - PDA 1506068
NURUL SYAMIN SYAHIRAH BINTI AHMAD ROSLY - PDA 1506034
ZARITH AIREEN BINTI JAMAL - PDA 1506035
NOOR SYAFIQAH BINTI MOHD YUNUS - PDA 1506028

CHAPTER 4 : MARKET STRUCTURES

week 10

Market is an arrangement that facilitates the buying and selling of a product, service, factor of production or future commitment.

Market is an arrangement that facilitates the buying and selling of a product, service, factor of production or future commitment.

week 9 COST OF PRODUCTION Types of cost production

Economies of scale 

Internal of economies of scale

External of economies of scale 

DISECONOMIES OF SCALE CAUSES

Some of the possible causes of diseconomies of scale are

- difficulties in control and supervision,

- slow decision making due to excessive size of administration,

- lack of employee motivation.

week 8 chapter 3 : PRODUCTION AND COST

Definition of production

process of using factors of production to produce goods or service.

*In other words, the transformation of inputs into outputs. Inputs is firm buy for use in production process such as land, labour, capital and entrepreneur.*

Short-run and Long-run Production

• Short-run period-one of the inputs is fixed but the other inputs are varied.
• Long-run period-the time frame in which all inputs are variable.

Types of Production

    1.Commercial services

       -Industries engaged in the movement of commodities so that they reach the final consumer on time,in good condition and in the correct quantity.

    2.Direct services

      -Services not rendered to material good s, as in commerce, but to persons and they are very                   important to the production process because they increase efficiency.

Law of Diminishing Marginal Returns

If the quantities of certain factors are increased while the quantities of one or more factors are held constant.

Total product (TP) is the amount of output produced
Average product (AP) is can be obtained by dividing the total product
Marginal product (MP) is the change in the total product of hat input corresponding an addition.

Relationship between Total Product (TP) and Marginal Product (MP)

• When MP is increasing, TP will increase at an increasing rate
• When MP is decreasing, TP will increase at a decreasing rate
• When MP is zero, TP is at its maximum.
• When MP is negative, TP declines.

Relationship between Marginal Product (MP) and Average Product (AP)
  

• When MP is above AP,AP is increasing.
• When MP is below AP, AP is decreasing.
• When MP equals to AP, AP is at maximum.

week 7

GOODLUCK DIA2B's

week 6

STUDY!!!

STUDY!!!

STUDY!!!

QUIZZ AND TEST GETTING CLOSER... omaigadddd hehe

week 5 Elasticity

 Price Elasticity of Demand measure Quantity demand, Qd due to change in price, P

Degree of Price Elasticity Demand 

            Income Elasticity of demand  

measure responsiveness of change in Quantity demand due to change of income.

Cross Price Elasticity of demand 

the degree of responsiveness of Quantity demanded of goods A to change in price of goods B

week 4 MARKET EQUILIBRIUM

Definition of Market Equilibrium

Market equilibrium price and quantity 

SHORTAGE AND SURPLUS

Shortage price set up below than equilibrium price. Qd > Qs (excess demand)

Surplus price is set up above than equilibrium price Qs > Qd (excess supply)

week 3 CHAPTER 2 :PRICING THEORIES

DEMAND

DEFINITION

Ability and willingness to buy specific quantities of goods in given  period of time at a particular price.

LAW OF DEMAND

LAW OF DEMAND

• Negative relationship between price of the product and quantity demanded
• when the price product increase, the quantity demanded decrease.

DEMAND SCHEDULE AND DEMAND CURVE

Demand schedule for a product is a list of the quantity that a buyer is willing to buy at difference prices at one particular time               

DETERMINANTS OF DEMAND

PRICE OF RELATED GOODS

• related goods fall into two categories :
  Subtitutes goods are goods that are use in conjunction with another product for example handphone and prepaid. when the price of handphone increase, the quantity demand for handphone will fall and demand for prepaid also decrease.

  

 2. CONSUMER'S INCOME

• Income increase ,consumer demand goods and services will increase,goods that  increase in demand as income increase arenormal good.goods that decrease in demand as income increases are inferior goods

  

 3. TASTE AND FASHION

• when the product is fashionable, the demand increases. If product becomes outdated, demand willdecreases

4. POPULATION

• when the Qd of product depends on the population size, If population size is big, then Qd of product increases

5. FESTIVE SEASON AND CLIMATIC CONDITION

• when the Qd of product depends on its season

Movement along and shift in the demand curve

SUPPLY

DEFINITION

Ability and willingness to sell a specific quantities of goods in given  period of time at a particular price.

  SUPPLY=WILLINGNESS TO SELL + ABILITY TO SELL

LAW OF SUPPLY

• Positive relationship between price of the product and quantity supplied
• when the price product increase, the quantity demanded increase.

MARKET SUPPLIED IS THE COMBINATION OF INDIVIDUAL SUPPLY

DETERMINANTS OF SUPPLY

• Price of related goods

Substitute goods:

Supply of product will decrease if there is an increase in the price of substitute product. 

Complementary goods :

An increase in P of a product will increase the Qs of complimentary product.

Cost of production:

 the cost of production increase, Qs will decrease. (vice versa)

• Expected future price is when the seller expects the P will increase in future, the current Qs will be decrease (vice versa)
• Technological advance is the existence of new technology will cut the cost of production.
• Number of sellers is when large firm supplying product, the Qs of the product will increase

Week 2 PRODUCTION POSSIBILITIES CURVE (PPC)

>3 assumptions to build the ppc

• limited factor of production
• economies have achieve level of full employment
• there are only two goods will be produce

ECONOMIC SYSTEMS

• Free market economy an economy system operated without the government intervention.
• Command economy an economy that is fully controlled by the goverment
• Mixed economy an economy system which is controlled partly by government and partly by market. 
• Islamic economy economy which uses Allah's creation in most efficient way based on Islamic laws.

week 1 CHAPTER 1: INTRODUCTION ECONOMY ISSUES

DEFINITION

Economy study the behavior in allocating and distributing limited resources to fulfill unlimited demands.

Microeconomics study of small units of economy which focuses on price and quantity
Macroeconomics study of entire economy in the country including inflation and unemployment

• POSITIVE VS NEGATIVE ECONOMIC STATEMENTS

• BASIC ECONOMY CONCEPT

SCARCITY , CHOICES, OPPORTUNITY COST

The world has limited resources or limited factors of production (labor, capital, land and entrepreneurship). These limited resources are met with the unlimited wants of all societies. This results in the economic problem of scarcity.

And it is because of this problem of scarcity that the rational man is forced to make a choice . Making a choice means that you have to face an opportunity cost .Opportunity cost is the second best alternative forgone by making a choice.

So, limited resources lead to the economic problem of scarcity. This in turn, forces economic agents to make choices and thus incur opportunity costs. 

FACTORS OF PRODUCTION

1. Land: The quality of land is based on location.
2. Labour: Workers that contribute in the production process.
3. Capital: Machines, buildings that are used to run the business.
4. Enterpreneurship: Individuals that has skill to manage business to produce profit.

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