What is the Minimum Efficient Scale (MES)? The minimum efficient scale (MES) is the point on the LRAC (long-run average cost) curve where a business can operate efficiently and productively at the lowest possible unit cost. The minimum efficient scale can also be a range of output for which the company receives constant returns to…
What is the National Commodities and Derivatives Exchange (NCDEX)? The National Commodities and Derivatives Exchange (NCDEX) is an agricultural commodity exchange in India. It consists of independent directors and offers an independent online platform for commodity trading. It was incorporated on April 23, 2003, as a public limited company under the Company Act 1956 and…
What is an Audit Committee? An audit committee is a sub-group of a company’s board of directors responsible for the oversight of the financial reporting and disclosure process. To be successful, the audit committee should understand the organization’s processes and internal controls. The audit committee must coordinate with the management team, independent auditor, and internal…
What is New Keynesian Economics? New Keynesian Economics is a school of thought in modern macroeconomics that is derived from Keynesian Economics. The original Keynesian economic theory was published in the 1930s; however, classical economists in the 1970s and 1980s critiqued and adjusted Keynesian Economics to create New Keynesian Economics. New Keynesian Assumptions New Keynesian…
What is a National Currency? A national currency is a currency issued by the monetary authority or central bank of a country. It is the medium through which the goods or services are purchased/sold within an economy. Currency can be anything that represents value; however, paper notes, coins, and digital cash are the most acceptable…
What is the P-value? In statistical hypothesis testing, the p-value (probability value) is a probability measure of finding the observed, or more extreme, results, when the null hypothesis of a given statistical test is true. The p-value is a primary value used to quantify the statistical significance of the results of a hypothesis test. The…
What is NAV Return? NAV return, or net asset value return, is a performance measurement for an entity’s assets minus liabilities. NAV return is typically used to measure the performance of mutual funds, open-end funds, or exchange traded funds (ETFs) because shares of the funds are typically purchased at their NAV. Net asset value return…
What is the Average Daily Rate (ADR)? The average daily rate (ADR) is a performance indicator used in the hospitality sector to measure the strength of revenues generated. It is measured as the total revenues generated by all the occupied rooms in a hotel or lodge divided by the total number of occupied rooms over…
What Does “At Par” Mean? The term “at par” means “at face value.” Bonds, preferred stocks, or other debt securities can be traded at par or at face value, below par, or above par. Par values are normally constant, as opposed to market prices, which fluctuate with consumer demand and interest rate movements. The par…
What is a Macroeconomic Factor? A macroeconomic factor is a pattern, characteristic, or condition that emanates from, or relates to, a larger aspect of an economy rather than to a particular population. The characteristic may be a significant economic, environmental, or geopolitical event that widely influences a regional or national economy. A macroeconomic factor can…
