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Why is equilibrium not necessarily established at full employment?

Why is equilibrium not necessarily established at full employment? Keynes contradicted the views of the classical economists. In the figure given below OY, represents the level of National income at which there is full employment in the economy.

By |2011-06-18T15:16:26+00:00June 18, 2011|Economics|Comments Off on Why is equilibrium not necessarily established at full employment?

How is equilibrium established under monopoly?

The necessary condition of equilibrium is the equality of marginal cost and marginal rev­enue. The same condition applies to monopoly also. Therefore equilibrium of a monopoly firm is estab­lished at a point where MC is equal to MR.

By |2011-04-11T07:16:48+00:00April 11, 2011|Economics|Comments Off on How is equilibrium established under monopoly?
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