Microeconomics is a branch of economics that examines how individuals and firms make decisions about allocating scarce resources. In contrast to macroeconomics, which looks at the economy as a whole, microeconomics focuses on the individual elements of the economic system.
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Business turnover, also known as sales revenue, is the total income a company generates from selling its products or services. It’s a key metric used to assess a company’s financial health and performance.
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Depreciation is the gradual reduction in the value of an asset over time because of wear and tear, obsolescence, or other factors. It’s a financial accounting concept that reflects the economic reality that assets ultimately lose their usefulness or become less valuable.
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Departmentation is the process of breaking down an enterprise into various departments.
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Input-Output Analysis (IOA) is a powerful economic tool that facilitates a comprehensive understanding of the complex interdependencies within an economy.
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Leverage is a financial concept that refers to the ability to magnify the impact of an investment or a business decision through the use of borrowed capital. It involves using various financial instruments or borrowed funds to increase the potential return on an investment.
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Capital budgeting helps companies decide where to allocate their funds for projects that will benefit them in the long run.
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Marginal Revenue (MR) is the additional revenue generated by producing and selling one more unit of a good or service. In other words, it represents the change in total revenue that occurs as a result of selling an additional unit of a product.
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Marginal cost is the additional cost a business incurs when it produces one more unit of a good or service. In simpler terms, it represents the cost of making an extra item.
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Game theory’s ability to model and analyze strategic interactions has proven invaluable in addressing complex problems involving conflict, cooperation, and competition.
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