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A shutdown point is a level of operation in which the company no longer benefits from continuing its operations and hence decides to shut down temporarily or permanently. The company no longer benefits from continuing production in the short run…
Fisher equation states that the nominal interest rate (r) is equal to the real interest rate (r*) plus the expected rate of inflation (π). What is the Fisher Equation? The Fisher equation explains the relation between the nominal and real…
A corporate guarantee is a legally binding commitment made by a company on behalf of another party, usually a subsidiary or affiliate company, to assume responsibility for the debt or other financial obligations of that party. You are free to…
The Laspeyres Price Index is a measure of inflation that compares the cost of a basket of goods and services in a base year to the cost of the same basket in a subsequent year. It is calculated by taking…
What is Paasche Price Index? Paasche Price Index is a price index that is used to measure the price level and cost of living in an economy and to calculate inflation. It was invented by a German Economist, Hermann Paasche.…
In this article, we shall discuss the special case of the market structure of oligopoly, and duopoly. Also in this article, I shall focus on some duopoly examples, which makes this clear to you. What is a Duopoly? A Duopoly…
Author: Sarthak Bhalerao Table of Contents What is Autonomous Consumption? How does Autonomous Consumption work? What is Dissaving? Autonomous Expenditures for Governments What is Autonomous Consumption? Autonomous consumption is the consumption expenditure that occurs when the income levels are zero…
Promissory estoppel is a legal principle that prevents a person from going back on a promise they made if another person has relied on that promise and acted in a way that would be detrimental to them to change that…
The Fisher Price Index (FPI) is a method of measuring inflation that takes into account both the change in the price level of a basket of goods and services, as well as the relative change in the quantities of those…
Introduction to Primary Market A stock market is a place where all the public companies are traded. The share price of these companies changes every second. Have you ever wondered how these companies are listed on the market? In this…
Short Selling Introduction to short selling Have you ever wondered that what if there was a way to earn money even when the market is falling? I am here to tell you that there is! One can easily earn money…
Mobile Wallets Introduction The one thing that attracts interest among researchers is the separation between management and ownership. As the board of directors is the key element of corporate governance, it is clear that its composition must be responsive to…