by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Pricing Power?In business and economics, pricing power refers to the rise in the price of a company’s products while maintaining its demand. If a company offers a unique product, then its pricing power will be strong. The demand for the product will not...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the One Third Rule?The one-third rule gives an estimate about the change in the productivity and effectiveness of labor owing to changes in capital. In other words, this rule enables one to figure out how changes in technology or capital will affect the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is X-Efficiency?X-Efficiency refers to the behavior, performance and efficiency that traders and firms maintain in imperfect competition. In a perfect market competition, elements of monopoly do not exist in the market and the prices of commodities are not...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Oligopsony?Oligopsony works just like oligopoly involving a few number of sellers. This market has a few big buyers willing to buy a product or service. The number being limited enables the purchasers to have a sense of control over the sellers, and lets...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Marginal Utility?Marginal utility is an economic term which refers to extra satisfaction gained by a consumer for consuming an additional unit of either a commodity or service. This means that there is always a satisfaction that one gets when he or she uses an...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Okun’s Law?Okuns law establishes the relationship between the unemployment rate and the Gross National Product of the U.S. economy. So, if the unemployment in the U.S. reduces by 1%, it would result in a threefold increase in its GNP. This law is...
