-
What Does ‘Marginal Revenue’ Mean?
What Is Marginal Revenue? Marginal revenue (MR) is a term used in economics and finance to describe the change in total revenue when an additional unit of a good or service is sold. This concept is closely related to the concept of marginal cost, which is the additional cost of producing an additional unit of…
-
What Does ‘Marginal Cost’ Mean?
What Is Marginal Cost? Marginal cost is the cost associated with the production of one additional unit of a good or service. For businesses, it’s important to understand marginal cost so they know how much profit they can earn from each additional unit they produce. In bigger organizations, it’s even more important to calculate marginal…
-
What Does ‘Marginal Benefit’ Mean?
Understanding Marginal Benefit Marginal benefit is an important concept to understand when learning about business and finance. Essentially, marginal benefit is the additional satisfaction or gain a consumer gets from one more unit of a product or service. In other words, it is the satisfaction the consumer would receive from each additional unit consumed, weighed…
-
What Does ‘Low-Ball’ Mean?
What Is Low-Balling? Low-balling is a business concept that refers to offering something at a lower price than its typical market value. It’s a commonly used practice that’s been around for a long time. Low-balling is popular because it can be used to attract customers, increase sales, and potentially make a larger profit, as customers…
-
What Does ‘Lessor vs Lessee’ Mean?
Understanding Lessors and Lessees When studying business and finance, it is important to understand the definitions of a lessor and a lessee. A lessor is the party that owns an asset, such as a building, and rents it out to another party. The person or business renting the asset is the lessee. What Is a…
-
What Does ‘Leasehold Improvements’ Mean?
Understanding Leasehold Improvements Leasehold Improvements are changes or renovations made to a rented or leased space in order to make it suitable for its intended use. These improvements can range from replacing or repairing aging structures to creating customized spaces that better suit the tenant. It is important for college students studying business and finance…
-
What Does ‘Lead Time’ Mean?
What Is Lead Time? Lead time is the amount of time taken between the start of a process and its completion. It is used in business and finance to measure the time it takes to complete a certain project, from the initial order of components to the delivery of the final product. Lead time is…
-
What Does ‘JV’ Mean?
What Does JV Mean? When it comes to business and finance, it’s important to be familiar with the different acronyms used in the industry. One of the most common acronyms is JV, short for joint venture. This type of venture is a partnership between two or more businesses, when each party agrees to share resources…
-
What Does ‘Iron Condor’ Mean?
An iron condor is an options trading strategy that allows investors to profit from a more conservative approach by limiting the overall risk they are taking. It is a four-legged options position that consists of two put and two call options with four different strike prices. What Is an Iron Condor? An iron condor is…
-
What Does ‘Interledger Protocol’ Mean?
Understanding Interledger Protocol (ILP) The interledger protocol (ILP) is an open source protocol that facilitates payments across different payment networks. It was developed in 2015 as a way to solve the issue of connecting different financial networks which don’t naturally connect, and to make it easier for individuals and businesses to quickly transfer money between…
