When people hear the words economy and economics the first thing that comes to mind is usually money. However, economics looks at a lot of other things that don't involve money. Economics looks at all the goods and services a society uses and how they are produced, distributed and consumed...
Transaction costs are costs incurred that don’t accrue to any participant of the transaction. They aresunk costsresulting from economic trade in a market. In economics, the theory of transaction costs is based on the assumption that people are influenced by competitive self-interest. At the hi...
Definition:An opportunity cost is the economic concept of potential benefits that a company gives up by taking an alternative action. In other words, this is the potential benefit you could have received if you had taken action A instead of action B. ...
The sunk cost fallacy is a concept in economics and behavioralfinancethat refers to a common decision-making bias that causes investors to continue with an underperforming investment strategy. The term “sunk cost” is defined as the losses already incurred and thus cannot be recovered. The losses...
money is deposited in banks, it is in turn used by banks for investment activities or to lend it elsewhere. As banks lend more money, there is more credit available, and thus borrowing increases. When this occurs, the cost of borrowing decreases (due to normal supply and demand economics)...
Opportunity cost is a fundamental concept in economics that recognizes the scarcity of resources and the need to make choices. When faced with multiple options, choosing one means giving up the benefits that could have been gained from the alternatives. In other words, opportunity cost is the val...
In economics, opportunity cost is the value of what you have to give up in order to choose something else. In a nutshell, it’s a value of the road not taken.Start your online business today. For free.Start for free Owning a business is about making choices: where to set up shop, ...
Home›Economics›Macroeconomics›What is a Marginal Cost? Definition:Marginal cost is the additional cost incurred for the production of an additional unit of output. The formula is calculated by dividing the change in the total cost by the change in the product output. ...
The sunk cost, in economics and finance, is a cost that has already been incurred and that cannot be recovered. In economic decision-making, sunk costs are treated as bygones and are not taken into consideration when deciding whether to continue an investment project.The reason why economic ...
Define Costes. Costes synonyms, Costes pronunciation, Costes translation, English dictionary definition of Costes. n. 1. An amount paid or required in payment for a purchase; a price. 2. The expenditure of something, such as time or labor, necessary for