Abuse of Dominant Position
It happens when a dominant firm use the anti competitive business practices to maintain or increase the market share either in the geographical or product markets.
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Abstinence
Abstinence is refraining consumption which could be taken immediately. Abstinence is the same as the saving where the funds not being spent arises from the current income. Abstinence also covers the act of refraining from running down past savings or spending windfall gains Absorption
In industrial organisation, absorption means the merger in which the acquired company transfers all the assets and liabilities to the acquiring company in return of cash and securities. Absorption means the total expenditure on services or real goods by investors, governments and consumers. It is the use of output. It excludes the exports and includes imports. Absorption is contrasted from production which includes exports and excludes imports. The absorption has its own approach to devaluation where it looks at its effects on various form of expenditure and point out that devaluation will only improve the payment balance on current account if there is an increase in production in relation to absorption. Absolute Advantage
Absolute advantage is the ability of the producer to produce an output by using lesser inputs than other producers. Absolute advantage does not provide guidance on how to allocate resources which are best considered in cases of comparative advantage. Abnormal Obsolescence
Abnormal obsolescence means the loss of value of an asset, property or a piece of capital equipment due to the changes in tastes, circumstances or techniques which cannot be reasonably foreseen. A specific equipment or asset may become obsolescence due to several factors such as consumers no longer want the good its produces or due to technical progress in other industries where the intermediate goods being produced is no longer needed. New technique which is allow production will less labour, material or fuel may also lead to obsolescence. Besides that, non compliance with improved health and safety regulations may also lead to obsolescence. Any natural catastrophe may lead to the property lose its value even without suffering from any damages. Ability to Pay
Ability to pay is a principle which indicates that any tax should fall on those who able to pay. Taking into consideration of ability to pay means that the payment of tax increase with the observed assets or income of the tax payers. Earning capacity should also be noted. The objection to ability to pay are that earning capacity is unobservable and that the taxing will reduce the the income and the incentive to work. The collection of taxes are unpopular move to those who are unable to pay. Ability to pay is opposite to the benefit principle. In terms of benefit principle, only those who benefit from any given public expenditure should be taxed. The tax revenue is useful for income redistribution and to pay for public goods.Due to the fact that the revenue is important in running the modern society and therefore taxation seems inevitable. Abatement Cost
Abatement cost is a cost which secures the reduction in pollution. It can be quoted as cost per unit or the total cost of achieving a given target. The concept of abatement cost applies to pollution which is caused by the production activities of firms and the consumption activities of the consumers. The marginal abatement cost should be equated to the marginal benefit to identify the efficient reduction in pollution. Abatement
Abatement is a reduction in degree, amount or intensity of an activity. Abatement in environmental economics is a term used to describe a reduction in the emission of pollutants. Behavioural abatement is consumption activities or changes in the lifestyle of consumers. Technical abatement means a measure involving the production of the activities of the firm which include introduction of new or amendment of existing processes or technologies. Accrual
Accrual or accrual charge is an amount which is incurred as a charge in a given accounting period but not paid at the end of that period. |
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