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Experience Kathmandu Like a Local: Uncover the City’s Hidden Gems

Hey there, I’m Wilson Shrestha, a Kathmandu local who loves exploring both cultural and natural gems on a budget without compromising on comfort. I’m a fan of local food joints and affordable hotels that serve delicious dishes.

For those planning a visit to Kathmandu, I highly recommend checking out cultural hotspots like Bashantapur, Swayambhunath, Pashupatinath Temple, and Boudha. These places give you a real taste of the city’s rich heritage, covering about half of what Kathmandu has to offer.

Don’t miss the chance to explore the natural beauty around Kathmandu, such as Shivapuri Nagarjun National Park and the serene Garden of Dreams. They provide a refreshing escape from the hustle and bustle.

And if you’re into touristy vibes, places like Thamel, Ason, and Kathmandu Fun Park are worth a visit. These spots add a different flavor to your Kathmandu experience.

In a nutshell, these landmarks are must-visit destinations that offer a blend of culture, nature, and entertainment. So, pack your bags and get ready for an unforgettable Kathmandu adventure!

starting a day in Kathmandu

Start a day in Kathmandu.

Begin your day in Kathmandu by embracing the local flavors – kick off with a warm cup of Chiya (Nepali tea) paired with Sel Roti, a delightful fried bread. Rise and shine at 7 AM, and venture out to discover a nearby tea shop for a classic Nepali breakfast experience.

Once fueled up, head over to Kathmandu Durbar Square. Early mornings here offer a serene ambiance and crisp, fresh air. Take in the historical richness of the square, surrounded by ancient palaces and temples. It’s a UNESCO World Heritage Site, filled with cultural and religious significance.

Continue your morning explorations by strolling through the local markets. Witness the hustle and bustle as vendors showcase their diverse array of products – from vibrant vegetables to intricate crafts. Immerse yourself in the vibrant tapestry of daily life, capturing the essence of local business.

Starting your day with Chiya and Sel Roti sets the tone for a day filled with cultural exploration and the unique charm of Kathmandu. Whether sipping tea in a bustling market or taking in the historical beauty of Durbar Square, your Kathmandu morning is bound to be an unforgettable experience.

Arrival in Kathmandu Nepal

The on-arrival visa fees for Kathmandu, Nepal, vary depending on the duration of your stay:

Duration Fee (USD)
15 Days $30
30 Days $50
90 Days $125

Additional information:

    • These are the standard fees. Some nationalities may be eligible for a visa on arrival free of charge or at a reduced fee. You can check the Department of Immigration website ( for the latest information.
    • You can also obtain a visa in advance from a Nepalese embassy or consulate.
    • You must have a valid passport with at least 6 months of remaining validity and a return or onward ticket to be eligible for a visa on arrival.
    • You can pay the visa fee in USD, EUR, or Nepalese Rupees.
  • It is recommended that you have the exact amount of money ready, as change may not always be available.

Best things to do in Kathmandu

Explore beyond the typical tourist attractions in Kathmandu to discover the true essence of this vibrant city through these unique experiences:

Cultural Immersion:

  • Traditional Puja: Witness a worship ceremony at a local temple or monastery to delve into the spiritual heart of Kathmandu. Observe Hindu and Buddhist traditions, from rituals to chanting, gaining cultural insights.
  • Learn a Traditional Craft: Engage in a workshop on thangka painting, wood carving, or metalworking. Create your souvenir while supporting local artisans and discovering skills passed down through generations.
  • Join a Cooking Class: Dive into Nepali cuisine by participating in a cooking class. Learn to prepare momos (dumplings) and dal bhat (lentil soup and rice), savoring both the flavors and cultural significance.

Adventure and Nature:

  • Hike to a Viewpoint: Challenge yourself with a hike to Chandragiri Hills or Champa Devi for panoramic views of the Himalayas and Kathmandu Valley. Enjoy the exercise, fresh air, and stunning scenery.
  • White-water Rafting on Seti River: Experience the thrill of navigating rapids while appreciating the natural beauty of the Seti River. Perfect for both adrenaline seekers and nature lovers.
  • Take a Yoga or Meditation Class: Connect with your body and mind in a yoga or meditation class. Many studios cater to various styles, suitable for beginners and experienced practitioners alike.

Local Connections:

  • Volunteer with a Local NGO: Give back to the community and gain insights into social issues by volunteering with a local NGO. Connect with locals and understand their lives in a meaningful way.
  • Homestay Experience: Immerse yourself in local life by staying in a homestay. Enjoy home-cooked meals, conversations with hosts, and a unique cultural experience.
  • Attend a Local Festival: Immerse yourself in the vibrant energy of Kathmandu by attending a local festival. Witness colorful costumes, music, dance, and food, gaining a deeper understanding of Nepalese culture.

Unique Experiences:

  • Rickshaw Tour: Navigate Kathmandu’s bustling streets on a traditional rickshaw. Interact with your rickshaw driver, experiencing the city’s sights, sounds, and smells firsthand.
  • Visit a Local Market: Explore the diverse sights, sounds, and aromas of Kathmandu’s local markets. Bargain for souvenirs, sample street food, and observe the daily life of locals.
  • Evening at a Traditional Music Bar: Immerse yourself in the local music scene by visiting a traditional music bar. Enjoy live performances of Nepali folk music and dance, soaking in the cultural richness of Kathmandu.

Places to visit in Kathmandu

Kathmandu, Nepal’s lively epicenter, is a blend of history, spirituality, and modern allure. During my recent journey, I explored its iconic landmarks and hidden treasures, each offering a distinctive peek into the city’s soul.

Pashupatinath Temple: Along the Bagmati River, I witnessed sacred life and death rituals. The air buzzed with mantras, incense, and mourning flutes. Though photography is restricted, the intricate architecture and poignant atmosphere made a lasting impression.

Boudhanath Stupa: This UNESCO World Heritage Site emanates Buddhist serenity. As I circled the stupa, the monks’ chants and fluttering prayer flags created a mesmerizing ambiance. The Buddha’s eyes painted on its face exuded peace and compassion.

Swayambhunath: Known as the “Monkey Temple,” its hilltop location provided stunning views of Kathmandu Valley. Playful monkeys added a whimsical touch, and exploring the shrines and stupas offered a journey through Buddhist history.

Kathmandu Durbar Square: Stepping into this historical square felt like a time warp. Elaborate temples and courtyards whispered tales of the Malla dynasty. Despite earthquake damage, the square’s resilience and historical significance shone through.

Narayanhiti Palace Museum: Once a royal residence, this museum showcased the opulence of the Shah dynasty. Grand halls contrasted with the simplicity of traditional Nepali life and exhibits documented the monarchy’s end.

Garden of Dreams: Amid urban chaos, this oasis surprised me. Themed gardens provided a peaceful escape, from a Roman garden to a serene Japanese one, offering unique atmospheres to relax.

Hike to Jamchen Vijaya Stupa: Seeking adventure, I hiked to this stupa. Lined with prayer flags, the trail offered breathtaking views. Reaching the hilltop stupa was a rewarding accomplishment and a spiritual connection.

Beyond the Sights: Kathmandu’s essence lies in its people and traditions. Engaging with locals, trying street food, and attending cultural events enrich your understanding of this captivating place.

Kathmandu’s tapestry of ancient temples, vibrant festivals, and warm people stays with you. So, pack your bags, embrace the chaos and beauty, and embark on your own Kathmandu adventure!

Best Local Food Restaurants in Kathmandu

Kathmandu is more than momos and dal bhat. Move away from the usual spots and discover authentic Nepali flavors at hidden gems. From traditional Thakali feasts to Newari specialties, here are some must-try local restaurants to satisfy your taste buds:

Traditional Nepali:

  •  Jimbu Restaurant: Local favorite offering Thakali sets – a mix of curries, veggies, and rice for an authentic Nepali dining experience.
  • Yangling Restaurant: Family-run joint serving home-cooked Newari cuisine; try the spicy buff chhoyela or the savory alu tama.

Hidden Gems:

  • Thamel House Restaurant: A tucked-away spot in Thamel, offering affordable Newari cuisine, featuring the juicy khasi ko sekuwa.
  • Rosemary Kitchen & Coffee Shop: This cozy cafe with Nepali specialties, tea, and homemade cakes; is a delightful place to unwind.


  • Narayan Dai Ko Famous Momo: Affordable and delicious momos in various flavors and styles; a local favorite.
  • Annapurna Chautara: Popular spot for budget-friendly local snacks and street food; try samosas, pakoras, and fresh fruit juices.
  • Cafe Soma: Located in Thamel, serves affordable Nepali thalis with a focus on healthy ingredients.


Cooking Class: Dive deeper into Nepali culinary culture by taking a cooking class to recreate authentic dishes at home.


– Explore local markets for fresh ingredients and snacks.
– Don’t hesitate to try new dishes and seek recommendations.
– Be mindful of spice levels and customize according to your preference.
– Carry cash, as some places may not accept cards.

Embark on a culinary journey in Kathmandu, exploring diverse and delicious local eats.

TOP Eleven Football Manager 442 Formation Tactics

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Get Nepse Online Trading Here

Nepse Online Trading

Are you considering investing in Nepal’s stock market but finding it challenging to visit the exchange every day physically? Thanks to modern technology, investing in NSE (Nepal Stock Exchange) can now be done from home or office through Nepse Online Trading. In this article, we provide an informative guide for those new to this form of investing.

What is Nepse Online Trading?

Nepse Online Trading is an online platform that enables investors to purchase and sell shares of companies listed on the Nepal Stock Exchange (NSE). Launched in 2011 by NSE, this platform is regulated by the Securities Board of Nepal (SEBON). Through Nepse Online Trading, users can place trades, monitor their portfolios, and access real-time market data from anywhere with an internet connection.

Why invest in Nepse Online Trading?

Nepse Online Trading offers several advantages over traditional trading methods. You no longer need to visit the stock exchange, saving time and energy. Furthermore, you have access to real-time market data to make informed decisions about when and how to buy/sell shares. Most importantly, Nepse Online Trading is a secure platform licensed by SEBON that guarantees your investments remain protected.

How Can You Begin Trading on Nepse Online Trading?

To get started trading on Nepse Online Trading, just follow these simple instructions:

Step 1: Open a Demat Account

Before investing in stocks, the initial step is opening a Demat account with a licensed stockbroker. A Demat account is digital and stores all your shares electronically; all that’s left for you to do is submit necessary documents such as your PAN card, citizenship certificate and passport-sized photos to the stockbroker.

Step 2: Register for Nepse Online Trading

Finally, to finish this process, sign up with Nepse online trading platform.

Once your Demat account is opened, you can register for Nepse Online Trading by filling out an online application form. Be sure to include both your Demat account details as well as personal information like name, address, and contact info.

Step 3: Fund your Trading Account

Once registration is complete, funds must be transferred from your bank account to your trading account through an online platform. Alternatively, you may link both accounts for automatic transfers.

Step 4: Place Buy or Sell Orders

Ultimately, it is time to place your buy/sell orders.

Once your trading account is funded, you can begin placing buy and sell orders for shares of companies of your choosing. With real-time market data at your disposal, making informed decisions regarding when to buy and sell stocks will become much simpler.

Tips for Successful Trading on Nepse Online Trading

Research Before Investing

Prior to investing in any company, it’s essential to research its financial performance, management team and future prospects. This data will give you the information needed to make an informed decision about which firms to invest in.

Monitor Your Portfolio

It is essential to regularly assess your portfolio’s performance and identify any potential risks or opportunities so you can adjust accordingly. Doing this helps you spot potential issues before they become major problems.

Invest for the Long Term

Investing in the stock market should be seen as a long-term decision. It is essential to have an objective investment horizon and avoid making impulsive decisions based on short-term market fluctuations.

Diversify Your Portfolio

Diversification is key when managing risk in the stock market. To minimize exposure to market volatility, invest in a diverse portfolio of companies across different sectors and industries.

Consult a Financial Advisor

If investing is new to you, it’s wise to consult with a qualified and experienced financial advisor first. They can offer valuable advice and strategies.

Before and After: The Controversial Reconstruction of Changunarayan Temple

Before and After The Controversial Reconstruction of Changunarayan Temple

Changunarayan Temple is an ancient Hindu temple situated atop a hilltop in Bhaktapur district of Nepal and dedicated to Lord Vishnu, believed to be the preserver of the universe in Hindu mythology. Dating back to 4th century, this is considered one of Nepal’s oldest temples and was constructed by King Hari Datta Verma during Licchavi era; it has been listed as a UNESCO World Heritage Site since 1979. Some sources attribute its construction to King Hari Datta Verma while others credit King Manadeva – but it could have involved both as it has undergone numerous renovations and additions over time – its exact origins may never be fully known.

Changunarayan Temple is a revered and holy site for those seeking blessings from Lord Vishnu. Art and history buffs alike appreciate the temple’s ancient architecture and artwork, located only 12km east of Kathmandu by road. A visit to Changunarayan Temple provides an unforgettable opportunity to learn about Nepal’s vibrant cultural and religious heritage.

After the earthquake damage, reconstruction efforts for the Changunarayan Temple were necessary. Unfortunately, I’m not entirely convinced about the modern style in which it’s been rebuilt. The use of various colors on its wooden statue takes away from its traditional and historical appeal. Personally, I preferred when the statue was covered in gold metal for a timeless and majestic appearance.

My opinion is that the reconstruction could have been done more successfully if it had kept the temple’s traditional design and architecture while also using modern materials and techniques for durability and safety. Nonetheless, I applaud the authorities’ efforts to preserve its cultural and historical significance and guarantee visitors continue to feel awed and reverence when visiting.

The ancient Changunarayan temple showcases the skills of ancient Nepalese artisans through its stone sculptures, wood carvings, and metalwork. It also houses an iconic idol of Lord Vishnu in a reclining position on Shesha, an infamous serpent.

Contrastingly, the new Changunarayan temple offers contemporary amenities like a paved courtyard, museum and parking lot. This was constructed after the old temple was damaged by an earthquake in 2015.

Story about Changunarayan Temple

Changunarayan Temple is an ancient temple located in Nepal built during the 4th century AD to honor Lord Vishnu. Legend has it that it was originally situated along the banks of the Vishnumati River but later relocated due to fears of flooding.

One of the most beloved legends associated with this temple is that of Lord Vishnu and Garuda, his mythical bird vehicle. Legend has it that Garuda was inspired by the beauty and sanctity of the place and settled at its base where today’s main deity stands – depicted reclining on serpent Shesha with his consort Lakshmi at his feet.

Over centuries, this temple has undergone many renovations and restorations, including a major reconstruction after the 2015 earthquake. Despite all of the damage, Nepalese government officials and international organizations worked diligently to restore the temple back to its former glory.

Today, Changunarayan Temple remains a beloved pilgrimage site and cultural and architectural treasure of Nepal. With intricate wood carvings, stone sculptures, and metalwork showcased by Nepalese artisans, visiting this spiritual landmark offers visitors an insight into Nepal’s rich cultural heritage. Visiting Changunarayan Temple is more than just an experience; it’s an opportunity to embrace oneself in spirituality.

How Changunarayan Temple plays a significant role to end Sati Pratha?

Changu Narayan Temple’s story is linked to the demise of Sati in Nepal. Legend has it that Raja Prithvi Narayan Shah, a king in the 18th century, saw a widow about to perform Sati – which involved burning herself on her husband’s funeral pyre. He was horrified and intervened, stopping her from performing it. Subsequently he issued a royal decree banning Sati throughout Nepal and eventually it disappeared from society altogether.

Today, the temple stands as a testament to progress and hope as it was instrumental in ending Sati, Nepal’s barbaric practice of ritualistic killing. People from around the globe visit this iconic site to pay their respects to Lord Vishnu and gain insight into Nepal’s vibrant culture and history.

Statues of Changunarayan:

  1. Statue of Garuda
  2. Statue of Narasimha (half-lion, half-man incarnation of Lord Vishnu)
  3. Statue of Vishnu in a reclining posture on the serpent Shesha
  4. Statue of Vishnu in his form as Narayan
  5. Statue of Vishnu in his form as Vaikuntha-Vishnu
  6. Statue of Bhairava (a form of Lord Shiva)
  7. Statue of Lord Shiva in his form as Ardhanarishvara (half-male, half-female)
  8. Statue of Chhinnamasta (one of the ten forms of the goddess Durga)
  9. Statue of Kileshwor (a form of Lord Shiva)
  10. Statue of Lord Krishna, Radha & Rukmani
statue of changunarayan temple


  1. Discover Nepal’s vibrant cultural and religious heritage: Visit one of Nepal’s oldest and most revered temples for unparalleled insight into the country’s vibrant spiritual traditions.
  2. Fascinating Legends and Stories: The temple is steeped in fascinating legends and stories, such as that of Vishnu and Garuda, that add to its allure and mystique.
  3. Beautiful Architecture and Artwork: The temple’s ancient architecture, intricate wood carvings, stone sculptures, and metalwork are a testament to Nepalese artisans’ skill and artistry – providing visitors with an eye-pleasing feast for the eyes.
  4. Spiritual Significance: The temple is a popular pilgrimage destination for both locals and tourists, who come to offer prayers and seek blessings from Lord Vishnu.
  5. Accessible Location: The temple is easily reached by road and lies only 12 km east of Kathmandu, making it a prime tourist destination.

Changunarayan Temple is a must-visit for those interested in Nepal’s cultural and religious heritage. With its ancient architecture, stunning artwork, and captivating legends, it provides an unforgettable experience for all visitors. Whether you’re spiritual, an art enthusiast, or simply curious about Nepal’s past – visiting Changunarayan Temple will be an unforgettable journey. As one of Nepal’s oldest and most respected temples, it stands as testament to their country’s vibrant culture that the Nepalese people are proud of.

Announcing my new book, “The Enigma of Changunarayan Temple,” a captivating exploration of the history, legends, and cultural significance of Nepal’s revered temple.
You can Directly read it from here.

incomplete elephant statue of changunarayan temple

During my recent trip to Changunarayan Temple with my friends, we had a hilarious moment when we stumbled upon the incomplete elephant statue. We couldn’t resist taking a few photos with it. We even joked that maybe the sculptor was just like us, who could not provide a finished art. Despite its unfinished state, the elephant still looked majestic and regal, and we couldn’t help but admire its intricate details. It was definitely one of the highlights of our trip, and we left with some great memories and even greater laughs.

Blind Date Nepal


Blind Date Nepal is an online platform that helps singles find someone special in their search for love and friendship. Blind Date Nepal offers a unique way to match and get to know potential partners using materials such as photos, videos, and audio files. Singles can easily identify suitable matches based on their location, age, gender, and interests.

What is Blind Date Nepal?

Blind Date Nepal is the leading online platform connecting singles in the Nepalese community. This website provides a safe and secure environment for singles to connect, build relationships, and find their perfect match. It also has top-notch features that allow single people to make the best of their dating experience. These features include a “Video Calling” option, on-site match assistance, and private messaging capability.


How Does Blind Date Nepal Work?

Using Blind Date Nepal, singles can easily identify potential partners and start communicating with them. All that is needed to begin searching for partners is to create a unique online profile. Singles can add images and videos, as well as a description of their interests and preferences. After that, Blind Date Nepal provides the option to specify your area of ‘interest’ and bring up profiles from their database of singles.

Benefits of Blind Date Nepal

Blind Date Nepal provides an effective, hassle-free way of finding someone special. It saves time by providing dozens of potential matches, while also highlighting features such as interests, gender, and location to make narrowing down the search easier. Furthermore, the site is packed with features such as video calling, which helps singles build trust and get to know someone better. Blind Date Nepal also offers private messaging as a mode of communication, preserving anonymity until single people feel comfortable enough to meet in person.


Through Blind Date Nepal, singles can conveniently look, search, and meet eligible partners. With its top-notch features, it makes the quest for love easier and more enjoyable. Blind Date Nepal is the ultimate platform for singles who are seeking something special and a chance to find that special someone in their lives.

Economics Class 12 Neb Notes

class 12 economics notes


Basic concepts of economics and allocations of resources


Human wants are unlimited but resources are limited and those resources are supplied in less amount than the demand. It is known as Scarcity.


Choice refers to the ability of a consumer or producer to decide which good, service, or resource to purchase or provide from a range of possible options.

Q NO.1 Scarcity is the central problem of the economy. Justify this statement.

Human wants are unlimited, but the resources are limited and those resources are supplied in less amount than the demand. It is known as Scarcity.

Scarcity is the central problem of the economy because while resources are limited, we are living in a society with unlimited wants. Therefore we have to choose. We have to make trade-offs. We have to effectively allocate resources. We have to do these things because resources are limited and cannot meet our own unlimited demands. People are creating unlimited demands, but there is less supply than demand so, that’s why scarcity is the central problem of the economy. People have a choice to choose the resources which are available.

In conclusion, Scarcity is the main problem of the economy because we have to choose the limited resources over the unlimited wants.

Production Possibility Curve


Human wants are unlimited but resources are available to fulfill those wants are limited, they have alternative uses. The production possibility curve is also known as the production frontier curve or the production boundary curve to the production transformation curve.


Production possibility curve refers to locus focus of various alternative combinations of two commodities that can be produced utilizing the available means and resources and given technology by an economy in a certain time period


  • The economy is producing only two goods.
  • There is full employment of resources.
  • Production technology is given and constant.
  • The factor of production is given and constant.
  • The time period is given.


Combinations Consumer goods Capital goods Opportunity Cost
A 0 10
B 1 9 -1:1
C 2 7 -2:1
D 3 4 -3:1
E 4 0 -4:1

This table shows combinations, consumer goods, capital goods, opportunity cost. Here, combination A(0, 10) shows 0 MT consumer goods and 10 MT capital goods. Combination B (1,9) shows 1 MT consumer goods and 9 MT capital goods. Combination C (2, 7) shows 2 MT consumer goods and 7 MT capital goods. Combination D(3, 4) shows 3 MT consumer goods and 4 MT capital goods. Combination E(4, 0) shows 4 MT consumer goods and 0 MT capital goods.



This figure shows that the x-axis measures consumer goods and the y-axis measures capital goods. In order to increase the production of one unit, more and more units of other goods have to be sacrificed since the resources are limited and are not equally efficient in the production of both the goods.


Hence, the resources are limited in order to increase the production of one good to the producer should have to sacrifice the production of other goods. The more unit of one commodity the more sacrifice of another commodity.

The shift in the PPC curve

The movement of the entire PPC form from its initial position to an inward or outward position, due to various reasons is called a shift in the PPC curve.

A rightward shift in the PPC curve

If the PPC curve moves upward due to technological progress, the discovery of natural resources, increase in the productivity of human resources, increase in the capital investment and increase in the capital formation, increase in the size of the population, etc is known as a rightward shift in the PPC curve.

Reasons for a rightward shift in PPC curve

  • Due to technological change.
  • Due to discoveries of natural resources in larger quantities.
  • Due to the increase in the productivity of labor.
  • Due to the increase in investment in capital and the increase in capital formation.
  • Due to the increase in the size of the population.

A leftward shift in the PPC curve

If the PPC curve moves backward or inward due to the backwardness in technology, shortage of natural resources, lack of capital investment, lack of machinery, lack of skilled human resources, decrease in size of the population, migration, etc is known as a leftward shift in PPC curve.

Reasons for a leftward shift in the PPC curve

  • Due to the backwardness in technology.
  • Due to the shortage of natural resources
  • Due to the lack of training for the labor.
  • Due to the decrease in capital investment.
  • Due to the decrease in the size of the population.

Division of labor

Dividing a whole task into different tasks and sub-tasks and done by separate labor according to skills, efficiency, and talent, etc is called division of labor.

Types of labor

1. Simple division of labor

If a task or work is entirely completed by a group of person then it will be known as a simple division of labor.

2. Occupational division of labor

If the people are categorized into various occupational groups like farmers, teachers, carpenters, etc then it is known as occupational division of labor.

3. Complex division of labor

Dividing a whole task into different tasks and sub-tasks and done by separate labor according to skills, efficiency, and talent, etc is called complex division of labor.

4. Territorial or Geographical division of labor

If some part of the country is specializing in the production of some goods it is known as territorial or geographical division of labor.

The advantages of the division of labor

  • The right person is in right place.
  • Increase in production.
  • Optimum use of machinery.
  • Saving of time.
  • Development of skills.
  • Production of quality goods and services.
  • Possibility of increase in innovation.

The disadvantages of the division of labor

  • The monotony of work.
  • Loss of resposibility.
  • Limited skills.
  • Workers become dependent.
  • Possibility of unemployment.
  • Possibility of over-production.
  • Possibility of decrease in productivity.

Specialization of labor.

The process of concentrating on and becoming an expert in a particular field, subject, or skills is a specialization of labor.

Advantage specialization of labor.

  • Specialization in a particular task, the small job allows workers to focus on the part of the production process so they will be better at some jobs than at others.
  • Workers who specialize in certain tasks often learn to produce quickly and with higher quality.
  • Specialization allows businesses to take the advantage of economies of scale, which means that increases the level of output and decreases the average cost of individual units.
  • Specialization of labor allows for big problems to be tackled with the efforts of many laborers.

Economic system

Economy is the system or the set of all activities related to production, consumption, and trade of goods and services in an area.

Types of economy

There are three types of economy. They are:-

  • Market economy.
  • Socialist economy.
  • Mixed economy.

1. Market economy

The market economy is also known as a capitalist economy or free enterprise economy. In a market economy, all economic activities like production, consumption, distribution, exchange, etc are organized and carried out by private sectors and guided by profit motive through the market forces – demand and supply.

Market forces determine what to produce, how to produce, and whom to produce. Demand or supply of resources determines their respective share in total income. Similarly, demand for and supply of goods and services determine the equilibrium price and quantity in the market. There is no extra tax or subsidy on goods and services. Consumers are free to decide their consumption or saving. There is no control over consumption level from the side of the government. Individuals can conduct international trade themselves. There is no control over export and import. The private sector is the backbone of economic development.

Hence, Government is the monitor and supervisor of the economy, US, UK, Japan, Germany are the example of a market economy.

Features of market economy

  • Economic activities are carried out by private sectors.
  • Existence of market mechanisms.
  • Consumer’s right.
  • Limited role of government.
  • Right of private property.
  • Self-interest.
  • No private monopoly.
  • Class conflict.

The advantages of the market economy.

  • Freedom of consumer.
  • Mobility of factor of production.
  • Efficient allocation of resources.
  • Perfect competition.
  • Technological innovation.

The disadvantages of the market economy.

  • Creates economic inequality.
  • Private sector domination.
  • Profit motive.
  • Possibility of illegal trade.
  • Possibility of production and consumption of harmful goods.
  • Neglects the production of public welfare goods.

2. Socialist economy

An economy in which all the economic activities are carried out by the central government for public welfare is called a command economy. A socialist economy is also known as a controlled economy or planned economy. In a socialist economy, resources are controlled by the state or government through the central planner.

In a socialist economy, all the wages, rent, interests, and profit are fixed by the government. The government decides what to produce, how to produce, and whom to produce. There is no existence of private property. In this economy, people are not guided by self-interest. They are guided by the interest of the nation. All the prices are set by the government since there is no private sector.

Hence, consumers are not free to choose goods and services for consumption. The government manages all economic activities. Some of the examples of socialist economies are North Korea, China, and the Former Soviet Union.

Features of a socialist economy

  • Public ownership of factor of production.
  • Social welfare.
  • No existence of market mechanisms.
  • Government has the absolute right to decision-making.
  • No existence of private sector.
  • No choice of the consumer.
  • Economic equality.
  • Class conflict.

Advantage of a socialist economy

  • Equal distribution of income.
  • Optimum use of all the resources.
  • Social welfare.
  • Long-term growth of the economy.
  • Better national security.

Disadvantage of a socialist economy

  • Barriers to the private sector.
  • Lack of competitiveness in the economy.
  • No consumers right.
  • Possibility of misuse of resources.
  • Lack of freedom.

3. Mixed economy

An economy in which economic activities are partly conducted by the government and private sector is called a mixed economy.

A mixed economy consists of both features of a socialist economy as well as a capitalist economy. Both government and private sector work together in this mixed economy. Major roles of the government are: providing security, supplying money, maintaining law and order, developing infrastructure, and so on. The private sectors are free to do their activities under the rules and regulations of the government.

Hence, production and distribution are managed and controlled by private sectors for the purpose of self-interest and profit earnings. The government sector prepares and implements policy instruments to control and regulate private enterprises directly and indirectly. Some of the examples of mixed economies are Nepal, India, Pakistan, Bangladesh, etc.

Feature of a mixed economy

  • Public-private ownership.
  • The majority of the economic activities are organized and carried out by the private sector.
  • Government plays the role of facilitator.
  • Consumers freedom.
  • Better allocation of resources by a public-private partnership.
  • Limited government intervention.
  • Price mechanisms and controlled price.
  • Profit motive and social welfare.

Advantage of mixed economy

  • The private sector is guided by the profit motive and self-interest.
  • Freedom and human rights.
  • Relatively equal distribution of income and optimum use of resources.
  • Check and balance by the government.
  • The government provides basic necessities like water, electricity, telephone, etc.

Disadvantage of a mixed economy

  • Possibility of high corruption.
  • The economy may be dominated by the big private sector.
  • Unwanted competition between private and public businesses.
  • Delay in decision-making by the government


Market and Revenue Curves


A market is a place or process where buying and selling of goods and services take place.

Classification of Market

1) Perfect Competition Market

A market system in which a large number of sellers sell a homogeneous product to a large number of consumers
is known as perfect competition.


  • There are a plenty of buyers and sellers.
  • All the firms in this market sale the homogenous product.
  • There is free entry and exit of firms.
  • There is free mobility of the factor of production.
  • The objective of the firm is profit maximization.
  • The market is completely understood by both buyers and sellers.

2) Monopoly Market

Monopoly is a market system in which there is only one product supplier and a high number of customers.


  • There are a lot of buyers and just one seller.
  • There are no close substitutes or items available on the market.
  • There is a strong barrier to enter the new firms into the industry.
  • Monopoly firms are called price maker.
  • The profit motive is the firm’s goal.
  • Monopolists use a pricing discrimination policy.

3) Imperfect Competition Market

I) Duopoly

Duopoly refers to market arrangements in which there are only two sellers of a product.

II) Oligopoly

Oligopoly is a market in which there are few sellers and numerous customers.

III) Monopolistic Competition

The market structure in which a big number of sellers sell differentiated heterogeneous items to a large
number of consumers is referred to as monopolistic competition.


Revenue is the monetary value obtained by a company or industry through the selling of goods and services.

Total Revenue

Total revenue is the total amount of sales receipts or money value collected by a business or industry from
the sale of varied amounts of goods within a certain time period.

Average Revenue

The average revenue of a product is the revenue per unit of a product. The ratio of total revenue to quantity
is known as average revenue.

Marginal Revenue

Marginal revenue is the additional income received by a company or industry by selling one more unit of
production. Marginal revenue is defined as the ratio of change in total revenue to change in quantity.

Nature under perfect competition market

  • TR rises at a constant rate in a perfect competitive market since the product’s price remains constant.
  • In a market with perfect competition, MR remains constant.
  • In a market with perfect competition, AR remains constant.

Nature under monopoly market

  • In a monopolistic market, TR first grows at a decreasing rate, then reaches a maximum and begins to fall as
    the price of the commodity falls as the selling amount increases.
  • MR stays constant in a monopolistic market.
  • In a monopolistic market, AR falls as the price of products and services rises. AR can never be 0 or

TR, MR and AR curve under perfect competition market


Units Price TR AR MR
1 5 5 5 5
2 5 10 5 5
3 5 15 5 5
4 5 20 5 5
5 5 25 5 5
6 5 30 5 5
7 5 35 5 5

The units of several commodities are shown in the table above. The table also displays the price, TR, MR, and
AR. In a perfect competitive market, the commodity price remains constant. TR is the product of the price and
the number of units. TR and units are averaged to form AR. The MR is the ratio of the change in TR to the
change in quantity.


tr ar and mr curve

The y-axis in the above table represents TR, MR, and AR, while the x-axis represents the units of output. In
this case, TR increases at a constant rate while MR and AR stay constant.

Relationship between TR, AR, and MR under perfect competition market

  • TR rises at the same rate as AR or MR at all levels of sales. It specifies that TR, AR, and MR are all equal
    for the first unit of sale.
  • For all levels of sales, AR and MR are equal and consistent.
  • AR and MR are equivalent to the price.

TR, MR and AR curve under monopoly market


Units Price TR MR AR
1 10 10 10 10
2 9 18 8 9
3 8 24 6 8
4 7 28 4 7
5 6 30 2 6
6 5 30 0 5
7 4 28 -2 4

The above table shows the units of many commodities. The pricing, Total Revenue (TR), Marginal Revenue (MR),
and Average Revenue (AR) are also included in this table (AR). In a monopolistic market, the price of a
commodity declines. Total Revenue (TR) is calculated as the total of price and unit sales. Average Revenue is
calculated by dividing Total Revenue (TR) by the number of units sold (AR). The ratio of the change in Total
Revenue(TR) to the change in quantity is known as the margin of revenue (MR).


The y-axis in the following table indicates Total Revenue (TR), Marginal Revenue (MR), and Average
Revenue(AR), while the x-axis represents the units of output. Total Revenue (TR) rises at a decreasing rate
until it reaches its maximum and begins to drop, whereas Average Revenue (AR) decreases but never becomes 0
and Marginal Revenue (MR) not only decreases but also becomes 0 and negative.

Relationship between TR and MR under monopoly market

  • When TR increases at decreasing rate MR is positive.
  • When MR becomes zero, TR reaches at its maximum.
  • When MR becomes negative, TR starts to decrease.
  • The decreasing and increasing rate of TR is equal to MR.

Relationship between AR and MR under monopoly market

  • AR and MR have positive relationship. A decrease in MR cause to decline in AR.
  • The decrease in MR is greater than the decrease in AR.
  • MR might be negative; however, AR always remains positive.
  • MR curve lies below the AR curve and halfway on the perpendiculars drawn from AR to the y-axis.

Numerical Problems.
1. a) Considered the following table.

Units Price TR MR AR
1 10 10 10 10
2 8 16 6 8
3 6 18 2 6
4 4 16 -2 4
5 2 10 -6 2

b) What types of market is this?

This is a monopoly market.


2. a) Considered the following table.

Units Price TR MR AR
1 20 20 20 20
2 20 40 20 20
3 20 60 20 20
4 20 80 20 20
5 20 100 20 20

b) What types of market is this? Why?

This is a Perfect Competition Market because price remains constant in perfect competiotion

c) Diagram

3. a) You are given following table:

Units Price TR MR AR
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
7 10 70 10 10

b) Plot TR, MR and AR in Graph

c) What type of market is this?

This is a perfect competition market.

d) What is the nature of TR curve?

TR curve increases at constant rate.

4. a) Consider the following table:

Units Price TR MR AR
1 10 10 10 10
2 9 18 8 9
3 8 24 6 8
4 7 28 4 7
5 6 30 2 6
6 5 30 0 5
7 4 28 -2 4

b) Plot TR, MR and AR in Graph

c) What type of market is this?

This is a monopoly market.

Cost and Cost Curves

Basic concept of Cost

The sum of the price paid to the inputs like rent, interest, wages, and other by producer to produce goods and services is known as cost

1. Money cost

The value of payment made in terms of money to the inputs used in the production in the form of rent, wages, salaries, allowences, profit, interest and price of raw materials is known as money cost.

2. Real cost

Real cost is a sacrifice made by the producer while producing goods and services. For example, Discomfort, pain are some examples of real cost.

3. Accounting cost

Cost which are necessary for accounting purposes is known as accounting cost.

4. Explict cost

The monetary payment of cash expenditure which a firm makes to those inputs which are not owned by the firm itself are called explict cost.

5. Implict cost

Implict cost ia the contribution made by the producer and his/her family members but not paid to them in monetary terms.

6. Economic cost

Economic cost is the aggregate of explict cost and implict cost.
Economic cost = Explict cost + Implict cost

Short-Run cost

Short-run is a time interval, which is too short to change all factor of production. It means all factor of production are not variable in short-run. Some factors are fixed and some are variable. Cost incurred on both fixed and variable factor of production in the short-run is known as short run cost.

Fixed cost

The cost incurred on the fixed factor used in the process of production is known as fixed cost. In other words, fixed cost are those cost which in total do not change with any changes in output.

Variable cost

Variable cost is the cost incurred on the purchase of variable factors used in the production. In other words, variable cost are those cost which vary directly with production.

Total cost

The overall amount of cost incurred by the producer while producing various units of goods and services in given time period is called total cost.
i.e. TC = TVC + TVC

Marginal cost

Marginal cost is the additional cost on total added by the production of one more unit of output.
Marginal cost is defined as the change in total cost resulting from one unit change in the level of output produced.
MCn = TCn – TCn-1

Average cost

Average cost is per unit cost of production. Average cost, at each level of output is calculated by dividing total cost by the corresponding level of output/production. Mathematically,
AC = 



Short-Run Total cost
1. Total Fixed cost (TFC)

The total amount of cost incurred on the fixed factor in short-run in the production process is known as total fixed cost. The total fixed cost remains constant whatever be the level of output, i.e. zero or more.

2. Total Variable cost (TVC)

The total amount of cost incurred on the variable factors in short-run is known as total variable cost. TVC remains at zero at zero level of output and it increases with increase in output.

3. Total cost (TC)

Total cost is self-defining. It is the sum of total fixed cost and total variable cost at each level of output or production.


Quantity TFC TVC TC
0 10 0 10
1 10 10 20
2 10 18 28
3 10 24 34
4 10 28 38
5 10 34 44
6 10 42 52
7 10 52 62



  • TFC remains the same whatever the output level, so TFC curve will parallel to x-axis.
  • TC and TVC always have inverse s-shape due to the apply of law of variable proportion.
  • TVC and TC curves are parallel to each other because the gap between TVC and TC is TFC which remains constant.

1. Average Fixed cost

  • Average fixed cost is the outcome of total fixed cost divided by the unit of a commodity.
  • Average fixed cost is the per unit fixed cost of the output.
  • Average fixed cost goes on decreasing with the increase in output level but it is always positive.
  • Average fixed cost takes the shape of L.

AFC = 



2. Average Variable cost

  • Average variable cost is the outcome of total variable cost divided by the level of output.
    i.e. AVC = 


  • At first, AVC decreases then reaches at maximum point and starts to increase.
  • It takes the shape of U.

3. Average cost

  • Average cost is the outcome of total cost divided by the level of output.
    i.e. AC = 


     or AC = AFC + AVC

  • AC is the summation of Average Fixed Cost and Average variable cost.
  • Average cost is the per unit cost of the output.
  • At first, AC decreases, then reaches at maximum point and starts to increase.
  • It takes the shape of U.


1 15 25 25 20 45
2 15 40 20 10 30
3 15 45 15 6.67 21.67
4 15 56 14 5 19
5 15 75 15 4 19
6 15 120 20 3.33 23.33
7 15 175 25 2.85 27.85

In this above table it shows units, average variable cost, average fixed cost, average cost, total cost and total variable cost where TFC is constant while TVC is increasing at decreasing rate and then it is increasing in increaing rate and AVC is determined by the TVC and units and AFC is determined by the TFC and units and AC is the sum of AVC and AFC.


In this table, x-axis represents units y-axis represents AVC, AFC and AC and AVC takes the shape of U while AFC is taking the shape of english letter L.

Reason behind U-shaped AC curve/SAC curve

In the short run production process law of variable proportion operates. According to this law, At first, TP increases at increasing rate while TP of a firm increases at increasing rate. Total cost of firm increases at decreasing rate in this situation per unit production (AC) declines. So, At first SAC curve slopes downward after the certain output level TP increases at the decreasing rate in this situation total cost of the firm increases at the increasing rate and per unit cost also increases by this reason SAC slopes upward and takes the shape of English letter U.

Marginal Cost (MC)

  • Change in total cost due to one unit change in output level is known as marginal cost.
  • Marginal cost is the additional cost on total cost added by the production of one more unit of output.
    i.e. MC = TCn – TCn-1


Units TC MC
1 50 50
2 70 20
3 80 10
4 85 5
5 95 10
6 115 20
7 145 30

The given above table shows the units, total cost (TC) and marginal cost (MC). Here, TC first increasing at increasing rate then it is increasing at decreasing rate and MC is the change in TC.


In this table, x-axis measures the units and y-axis measures the marginal cost. Marginal cost always takes the shape of U.

Relation between AC and MC curve

  • When AC is decreasing MC lies below the AC.
  • When AC is increasing MC lies above the AC.
  • MC cuts AC from minimum point of AC.
  • The decreasing and increasing rate of MC is faster than AC

Theory of price and output determination


Equilibrium is a state of rest, where two opposing forces are in balance.

Equilibrium condition of the firm under TC-TR approach in perfect competition.