Demand forecasting is an essential activity in sales and marketing. The demand forecasting has to be done so that the company does not store huge…
Accelerator principle
The accelerator principle is also known as accelerator effect or acceleration principle. It can be described as an economic concept that defines the association between…
Absolute cost advantage
As a firm, there are a lot of things that need to be done to ensure that you maintain a competitive advantage in the market….
Economies of Scale
Economies of scale is a concept which leads to reduction of costs when a company expands its production. The cost is reduced because fixed costs…
Managing supply and demand
One of the hardest tasks of an entrepreneur is to meet the requirements of the market which in other words means managing supply and demand….
Baumol’s Cost Disease
Baumol’s Cost Disease (also called the Baumol effect) is a phenomenon observed in certain primarily labor intensive industries where there is little or no gain in…
Price elasticity of demand
The price elasticity of demand is a notion closely related to the notion of Giffen Good (by Robert Giffen) which first appeared in Alfred Marshall’s…
