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Business mathematics comprises mathematics credits taken at an undergraduate level by business students.The course [3] is often organized around the various business sub-disciplines, including the above applications, and usually includes a separate module on interest calculations; the mathematics itself comprises mainly algebraic techniques. [1]
The accounting equation plays a significant role as the foundation of the double-entry bookkeeping system. The primary aim of the double-entry system is to keep track of debits and credits and ensure that the sum of these always matches up to the company assets, a calculation carried out by the accounting equation. It is based on the idea that ...
The solution of the resulting system of equations (both linear and non-linear) is the general equilibrium. [25] At the time, no general solution could be expressed for a system of arbitrarily many equations, but Walras's attempts produced two famous results in economics. The first is Walras' law and the second is the principle of tâtonnement.
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 ...
The firm has in its interest to raise its output level to maximize profits, because the revenue gained will be more than the cost to pay. However, if the output level is greater than Q ∗ {\displaystyle Q^{*}} ( MR < MC {\displaystyle {\text{MR}}<{\text{MC}}} ), as shown in the blue part, the firm's overall profit will decrease because the ...
The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". [22] The term is ultimately derived from Ancient Greek οἰκονομία (oikonomia) which is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός (oikonomikos), or "household or homestead manager".
These barriers allow firms to maintain a large portion of market share due to new entrants being unable to obtain the necessary requirements or pay the initial costs of entry. An oligopoly is a case where barriers are present, but more than one firm is able to maintain the majority of the market share.
In business, the purpose of the return on investment (ROI) metric is to measure, per period, rates of return on money invested in an economic entity to decide whether or not to undertake an investment. It is also used as an indicator to compare different investments within a portfolio.