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In cost-volume-profit analysis, a form of management accounting, contribution margin—the marginal profit per unit sale—is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. [2] Typically, low contribution margins are prevalent in the labor-intensive service sector while high ...
In a similar vein, Milgrom and Segal's (2002) Theorem 3 implies that the value function must be differentiable at = and hence satisfy the envelope formula when the family {(,)} is equi-differentiable at (,) and ((),) is single-valued and continuous at =, even if the maximizer is not differentiable at (e.g., if is described by a set of ...
The simplest form of a group-contribution method is the determination of a component property by summing up the group contributions : [] = +.This simple form assumes that the property (normal boiling point in the example) is strictly linearly dependent on the number of groups, and additionally no interaction between groups and molecules are assumed.
The Keynesian cross diagram is a formulation of the central ideas in Keynes' General Theory of Employment, Interest and Money.It first appeared as a central component of macroeconomic theory as it was taught by Paul Samuelson in his textbook, Economics: An Introductory Analysis.
The Marshall–Lerner condition (after Alfred Marshall and Abba P. Lerner) is satisfied if the absolute sum of a country's export and import demand elasticities (demand responsiveness to price) is greater than one. [1]
Medium run aggregate supply (MRAS) — As an interim between SRAS and LRAS, the MRAS form slopes upward and reflects when capital, as well as labor usage, can change. More specifically, medium run aggregate supply is like this for three theoretical reasons, namely the Sticky-Wage Theory, the Sticky-Price Theory and the Misperception Theory.
It suggests that there is no natural reason for an economy to have balanced growth. The model was developed independently by Roy F. Harrod in 1939, [1] and Evsey Domar in 1946, [2] although a similar model had been proposed by Gustav Cassel in 1924. [3] The Harrod–Domar model was the precursor to the exogenous growth model. [4]
[1] [2] Quite often, a very small percentage of the firm's best customers will account for a large portion of firm profit. Although this is a natural consequence of variability in profitability across customers, firms benefit from knowing exactly who the best customers are and how much they contribute to firm profit.