The alternative hypothesis is a way to propose a contrasting view on a proposed theory by a researcher. It tries to prove the original statement provided by the null statement false. Let us discuss what an alternative hypothesis is, how it is different from the null hypothesis, its types, and some examples in our article. […]
What is an Alternative Hypothesis? Definition, Types, and Examples Read More »
Abnormal profit refers to the unusual profit generated by a business due to an added advantage or market structure. Businesses can generate abnormal profits due to several reasons including an economic monopoly or imperfect competition. Let us discuss what abnormal profit is, how it exists, and what are its advantages and disadvantages. Abnormal Profit –
What is Abnormal Profit in Economics? (Definition, Formular, and Example) Read More »
The simple definition of aggregate is sum or total. In economics, it is used to characterize the sum of a given economic variable. Associating economic relationships at the micro to aggregate levels is often called aggregation. Aggregate Economic Variables Aggregate economic variables are the total values of these variables for the economy as a whole.
What Does Aggregate Mean In Economics? Read More »
Risk behavior defines the characteristics of an investor. The risk behavior can be closely linked with the personal behavior of investors. However, many other factors also influence and shape risk behavior. Let us discuss what is risk behavior, risk aversion, and different types of risk profiles. What is Risk Behavior? Risk behavior refers to the
Risk Behavior and Risk-averse – Definition, Explanation, and Analysis Read More »
Companies offer products and services to their customers. These items help generate revenues, which are substantial in making profits. For companies, these products are essential to attract customers. However, competitors may also offer similar items. Companies must ensure that they have a competitive edge over those competitors. This way, they can ascertain that customers prefer
What is Best in Class? Definition, Meaning, Example, and More Read More »
We’ve always heard the word “Economy” in several different ways in our daily life. Sometimes the economy pricing is used for the country, and sometimes it’s used for domestic or international purposes. If a company or a brand launches its product and sells it for a meager price with minimum margin compared to its competitors,
Economy Pricing: Definition, Example, Advantages, and Disadvantages Read More »
Overview James E. Walter proposed a theory on the dividend policy of a company. It states that a company’s dividend policy depends on the internal rate of return [r] and capital (k) cost. James Walter offered an interlink between the dividend decision and investment decision of a company. He stated that both decisions are interlinked
Walter’s Model on Dividend Policy: Explanation, Formular, Example, And More Read More »
Overview Inflation refers to the increasing prices of goods and services. It means the purchasing power of a currency decreases. Inflation affects an economy in several ways. Thus, it impacts every walk of life, including businesses. Controlled inflation is not always bad for an economy. Businesses flourish when inflation rates are under control. However, negative
Inflation Effects on a Business: 13 Points That It Might That You Should Know Read More »
Overview Inflation is the increase in the prices of goods and services. Deflation or negative inflations is the opposite, the decrease in prices of goods and services. Inflation and deflation have their causes, effects, and control measure for an economy. Central banks and government institutes strive to achieve a delicate balance between inflation and deflation.
Inflation Vs. Deflation – Key Differences, Causes, and Effects Read More »
