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In economics a trade-off is expressed in terms of the opportunity cost of a particular choice, which is the loss of the most preferred alternative given up. [2] A tradeoff, then, involves a sacrifice that must be made to obtain a certain product, service, or experience, rather than others that could be made or obtained using the same required resources.
The Williamson tradeoff model is a theoretical model in the economics of industrial organization which emphasizes the tradeoff associated with horizontal mergers between gains resulting from lower costs of production and the losses associated with higher prices due to greater degree of monopoly power.
In health economics, time trade-off (TTO) is a technique used to measure the quality of life that a person or group is experiencing. An individual will be presented with a set of directions such as: An individual will be presented with a set of directions such as:
Researchers in political economy have viewed the trade-off between military and consumer spending as a useful predictor of election success. [1] In this example, a nation has to choose between two options when spending its finite resources. It may buy either guns (invest in defense/military) or butter (invest in production of goods), or a ...
The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves.It analyzes how consumers maximize the desirability of their consumption (as measured by their preferences subject to limitations on their expenditures), by maximizing utility subject to a consumer budget constraint. [1]
Trade credit is an arrangement that allows a business to acquire goods or services from another business without making immediate payment. Trade credit is essentially a short-term loan without ...
Journal of Financial Economics 85.1 (2007): 123-150. Lettau, Martin, and Sydney Ludvigson. "Measuring and modeling variation in the risk-return tradeoff." Handbook of Financial Econometrics 1 (2003): 617-690. Ghysels, Eric, Pedro Santa-Clara, and Rossen Valkanov. "There is a risk-return trade-off after all."
A trade war is a conflict between two countries marked by rising tariffs and other similar protectionist actions. Remember, a tariff is a tax put into place by one country on imported goods or ...