are decreasing returns to scale?
6335
If output increases by less than that proportional change in all inputs, there are decreasing returns to scale (DRS). If output increases by more than the proportional change in all inputs, there are increasing returns to scale (IRS).
793538
If we've learned anything from the past market cycles, it's that the fundamentals eventually matter, and all revenues are decidedly not created equal. ... Capital Expenditure Intensity – All things being equal, a company with heavy CapEx will trade at a lower price/revenue multiple (for sure).
849983
If profits rise due to lower costs — through higher productivity or economies of scale, for example — the result can be lower prices for consumers and improved overall economic welfare. ... On average, we find that mergers do not have a discernible effect on productivity and efficiency.
63200
When AP is rising it is always less than MP and when it is falling it is always greater than MP. MP = AP when AP is at its max. The law of diminishing returns states that as a firm uses more of a variable input without changing the quantity of fixed inputs, the MP of the variable input will eventually decline.
1331819
1. The AFC curve is downward sloping because as output increases, the firm spreads its fixed costs over larger and larger amounts of output. 2. The AVC curve is U-shaped because of decreasing marginal returns.
207012
There are diminishing returns to an input when an increase in the quantity of that input, holding the levels of all other inputs fixed, leads to a decline in the marginal product of that input. decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.
947017
When we consume more units of a particular good, marginal utility from consumption of new units will decrease until it eventually becomes negative. A good's total utility increases with diminishing returns until it becomes constant and starts falling.
1216905
A lower risk always means a higher return. A higher risk often means a lower return. A lower risk will always mean a lower return.
168521
A more correct statement may be that there is a positive correlation between the amount of risk and the potential for return. Generally, a lower risk investment has a lower potential for profit. A higher risk investment has a higher potential for profit but also a potential for a greater loss.
366379
Fixed Factors of Production: The law of diminishing returns applies because certain factors of production are kept fixed. ... If certain factor becomes fixed, the adjustment of factor of production will be disturbed and the production will not increase at increasing rates and thus law of diminishing returns will apply.
558140
Both by increasing inequality and reducing corporate investment, and thus productivity gains, buybacks might be bad for the overall economy, too. A high-inequality economy is one with less consumer spending and demand across the board, thus one with a lower GDP.
1432824
Opportunity cost is return you forfeit for selecting another investment. So, yes he can forfeit a negative return for a positive one. Then this choice may be speculative. If opportunity cost is negative, then chances are that there is no positive return opportunities in the economy.
961338
Bad news first: Capital gains will drive up your adjusted gross income (AGI). ... In other words, long-term capital gains and dividends which are taxed at the lower rates WILL NOT push your ordinary income into a higher tax bracket.
1419026
WPP saw its EPS decline at a compound rate of 4.9% per year, over the last three years. This reduction in EPS is slower than the 18% annual reduction in the share price. So it seems the market was too confident about the business, in the past.
459568
['Time Value of Money.', 'Simplicity.', 'Hurdle Rate / Required Rate of Return Is Not Required.', 'Required Rate of Return is a Rough Estimate.', 'Economies of Scale Ignored.', 'Impractical Implicit Assumption of Reinvestment Rate.']
518216
On balance, international research has found that low interest rates tend to reduce the NIMs of banks. ... Furthermore, low interest rates tend to flatten the yield curve, which can be negative for net interest incomes, reflecting the fact that banks tend to borrow short term and lend long term.
1334479
"Income returns" would be the interest and dividends paid by your investments. "Market gain/loss" is the amount your shares changed in value.