PEOPLE RESPOND TO INCENTIVES
Pizza hut and Dominos are two top company in india for making pizza. Dominos provide more variety of pizza compare to pizza hut. Most of the times Dominos provide more discount compare to pizza hut. So people prefer dominos more than pizza hut. This scenario occurs due to people respond to incentives. Here low prices and availability of more varieties are the incentives for which people prefer Dominos more than pizza hut.
DIMINISHING MARGINAL UTILITY
Circus artists perform same type of acts in their every performance. So if they do events in the same city then by seeing same type of performance people gradually lose interest and do not come to watch circus by which they face problems in earning money. This scenario occurs due to the diminishing marginal utility. So they perform events in different cities for good income by avoiding diminishing marginal utility.
PRODUCTION FUNCTION
Before 2015 Xiaomi did not have manufacturing plant in India. But in 2015 they tied up with Foxconn to set manufacturing unit of xiaomi mobile in New Delhi and Sri City Andhra Pradesh. Where a lot of skilled workers work and make MAKE IN INDIA Xiaomi products. Here MAKE IN INDIA Xiaomi products are the maximum output they derive from two inputs raw materials using in mobile manufacturing and skilled workers.
OPPORTUNITIES COST
The servant who works in my house took a leave of a month for travelling. The cost of doing this is whatever he paid for his bus fare, accomodation and other expenses during the month. The opportunity cost of doing this is the loss of his one month salary.
LAW OF DEMAND
In Big Billion days offer time the sales in Flipkart grows dramatically more than normal days because the price of the products available at that duration of time comparably much less than normal days by which the quantitative demand of the products available in Flipkart is high in that duration of time.
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