According to Business Dictionary, a constant-cost industry is an industry in which the ratio of units produced to the production cost per unit is constant, even when demand increases. This industry also keeps input prices the same.
According to AmosWEB, in a perfectly competitive industry, the demand and supply curves offset each other. An initial increase in demand causes equilibrium price and quantity to rise, but with free entry and exit, new firms enter the industry as they are induced by higher retail prices. This increase of firms leads to an increase in supply with a lower equilibrium price but a higher quantity. Yet, the supply curve shifts to the original price level of the old equilibrium price, thereby maintaining the same cost in the long run but having higher output.Learn More
Elasticity of demand is an economics term meaning the relative change in quantity demanded for a good based on a particular price change. High price elasticity means that a particular change in price causes consumers to significantly reduce the amount of goods purchased.Full Answer >
Economics plays a vital role in making modern civilization function, so studying economics helps experts learn how to prevent problems. Studying economics also helps when running or managing a business. Economics is often viewed as a scientific field.Full Answer >
In most profit sharing programs, companies take a percentage of the annual profits, distribute them to a pool and allocating them to employees who are part of the program. Employers can decide how much to allocate to each individual employee and how they want to structure the payments. Some programs distribute funds as pay bonuses or open accounts that allow employees to collect returns on the funds.Full Answer >
The sociopolitical philosophy of cooperative individualism calls for people of all societies to establish a legal system that promotes and protects equal opportunity, liberty and human rights. Cooperative individualism is a branch of cooperative economics that promotes the ownership and control of workplaces by the workers. Cooperative individualists argue that company profits should be paid as dividends to its workers.Full Answer >