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Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
In any technical subject, words commonly used in everyday life acquire very specific technical meanings, and confusion can arise when someone is uncertain of the intended meaning of a word. This article explains the differences in meaning between some technical terms used in economics and the corresponding terms in everyday usage.
Dynamic pricing is the automatic adjustment of a starting price based on data insights to optimize revenue and customer uptake. Starting price data can come from any number of sources – ranging from Revenue Management (RM) systems to ATPCO filed fares [5] An example of Dynamic Pricing is "continuous pricing" implemented by Lufthansa Group [6].
In an idealized free market economy, prices for goods and services are set solely by the bids and offers of the participants. Scholars contrast the concept of a free market with the concept of a coordinated market in fields of study such as political economy, new institutional economics, economic sociology, and political science. All of these ...
A free price system or free price mechanism (informally called the price system or the price mechanism) is a mechanism of resource allocation that relies upon prices set by the interchange of supply and demand. The resulting price signals communicated between producers and consumers determine the production and distribution of resources ...
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The effect that rising demand has on prices in marketplaces with intense competition is a typical illustration of pecuniary externalities. Prices rise in response to shifts in consumer preferences or income levels, which raise demand for a product and benefit suppliers by increasing sales and profits.