Home › Finance Formulas › Operating Ratio Formula › Htm Operating Ratio Formula Fixed Charge Coverage Ebitda Interest Expense Scheduled Mortgage Principal Pmts Ratios Noi Gaap Basis Accounting Profit Margin Calculator What Gross

Finance Formulas / July 19, 2018 / Rory Wise

When the cross elasticity of demand for product A relative to a change in the price of product B is positive, it means that in response to an increase in the price of product B, the quantity demanded of product A has increased. An increase in the price of product B means that more people will consume A instead of B, and this will increase the quantity demanded of product A.

For example, if a company had $150,000 in revenues and $50,000 in explicit costs, its accounting profit would be $100,000. The same company also had $25,000 in implicit, or opportunity costs. Its economic profit would be $75,000.

88 out of 100 based on 821 user ratings

We Also Think Youâ€™ll Like

Knowingpains

Category

© 2018 Knowingpains. All rights reserved