Archives: Terms

Definition of Marginal Analysis Marginal analysis refers to the process of evaluating the additional benefit or cost of an action or decision. It involves comparing the incremental changes in benefits and costs to make informed choices. In other words, marginal analysis examines the consequences of small changes in a particular […]

Definition of Maquiladora A maquiladora is a type of manufacturing operation that is commonly found in Mexico and other border regions. It involves factories that import raw materials or components duty-free, assemble or process them into finished goods, and then export the final products back to the originating country. These […]

Definition of Manufacturing Manufacturing is the process of transforming raw materials or components into finished products through various production processes, such as assembly, fabrication, or processing. It involves the use of machinery, tools, and labor to create goods that meet specific quality standards and fulfill the needs and wants of […]

Definition of Macroeconomic Factor A macroeconomic factor is a variable or indicator that influences the overall performance of an economy on a large scale. It is used to analyze and understand the broader economic conditions and trends of a country or region. Macroeconomic factors can include variables like gross domestic […]

Definition of Macro Environment The macro environment refers to the external factors that can impact an organization or industry as a whole. These factors are typically beyond the control of the organization and include economic, social, political, technological, and environmental influences. The analysis of the macro environment helps organizations understand […]

Definition of Luxury Item A luxury item is a good or service that is considered to be highly desirable and often associated with wealth, status, or exclusivity. Luxury items are typically priced higher than similar goods or services and are often produced with high-quality materials or craftsmanship. They are designed […]

Definition of Low-Hanging Fruit Low-Hanging Fruit refers to tasks, projects, or goals that are relatively easy to achieve or obtain. The term is often used to describe opportunities that require minimal effort or resources to be successful. In other words, low-hanging fruit represents the easiest and most obvious targets for […]

Definition of Lost Decade A lost decade refers to a period of ten years in which there is little or no economic growth or progress. It is characterized by stagnation or decline in economic indicators such as GDP, employment, and investment. Lost decades are often associated with recessions, financial crises, […]

Definition of Lorenz Curve The Lorenz Curve is a graphical representation that illustrates income inequality within a specific population. It plots the cumulative share of income received by each segment of the population on the horizontal axis against the corresponding cumulative share of the population on the vertical axis. The […]

Definition of Long-Run Average Total Cost (LRATC) The long-run average total cost (LRATC) is the average cost per unit of output when all inputs can be varied. It represents the cost of production when a firm can adjust all factors of production, including labor, capital, and technology. Unlike short-run costs, […]