What Is the Marginal Rate of Transformation (MRT)? Marginal Rate of Transformation measures opportunity cost. It shows how many units of one product you need to curtail to make one unit of another. In other words, MRT deals primarily with economic priorities given limited available resources. The marginal rate of […]
Economics
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What Is Incremental Analysis? Incremental analysis is a business decision-making tool that examines alternative choices based on marginal cost differences between them. Incremental analysis is used in business to determine the true cost difference between alternatives. This technique is also known as the relevant cost method, marginal analysis, or differential […]
JIT Meaning – Just in Time Inventory and Manufacturing JIT Meaning: JIT or just-in-time commonly refers to an inventory and manufacturing strategy. It aligns raw-material orders from suppliers directly with production schedules and usage. Companies employ this inventory and manufacturing strategy to increase efficiency and decrease waste. Receiving goods only […]
What Is Moral Suasion? Moral suasion is the act of using verbal arguments, appeals, and persuasion to influence a person or group of people to change their behavior. This is in contrast to using overt coercion or physical force. In other words, moral suasion uses diplomatic verbal strategies rather than […]
What Is Rule 147? SEC Rule 147 allows small local companies to raise intrastate funds without having to register with the Securities & Exchange Commission. Rule 147 can be used by a company to raise funds within its own state of operations. Further, they can do this without actually registering […]
What Is New Growth Theory? The New Growth Theory is an economic concept. It holds that humans’ unlimited desires foster ever-increasing productivity and economic growth. It contends that because of people’s insatiable desire for profit, real GDP per person will continue to rise indefinitely. The New Growth Theory, sometimes known […]