Economic

What Is Economy Pricing? – And How Does It Work? (Explained with Example)

A business is not set up overnight. It takes a lot of effort, struggles, sleepless nights, sacrificed dinners, and teamwork. After putting a lot of effort into product research, idea generation, execution, and finally launching in the market, the most critical question is pricing strategy. Pricing strategy is the most critical card of the marketing …

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Economic Order Quantity – Formula, Example, and Explanation

In any business, production costs are the foundation of the pricing strategy, profit margins, and market positioning. The most important costs incurred in any manufacturing operation are material, labor, and factory overhead. Material is often existing as a cushion between production and consumption of the goods. In any inventory, you will find material in various …

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Diseconomies of scale – How is it affect the costs of products?

Definition: Diseconomy happens when the entity wants to decrease production costs or direct costs through increasing labor force and machinery but the result is not as what they want. The productions costs per unit increase while entities deploy more labor force and machinery. The main reason is the marginal cost increase while the production increase. …

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