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An example would be a factory increasing its saleable product, but also increasing its CO 2 production, for the same input increase. The law of diminishing returns is a fundamental principle of both micro and macro economics and it plays a central role in production theory .
Internal rate of return ( IRR) is a method of calculating an investment 's rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk . The method may be applied either ex-post or ex-ante.
The standard deviation σ of X is defined as which can be shown to equal. Using words, the standard deviation is the square root of the variance of X . The standard deviation of a probability distribution is the same as that of a random variable having that distribution. Not all random variables have a standard deviation.
Return on investment ( ROI) or return on costs ( ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favourably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment ...
Rate-of-return regulation is a system for setting the prices charged by government-regulated monopolies, such as public utilities. It attempts to set prices at efficient (non-monopolistic, competitive) levels [1] equal to the efficient costs of production, plus a government-permitted rate of return on capital.
Renewable energy (or green energy) is energy from renewable natural resources that are replenished on a human timescale. Using renewable energy technologies helps with climate change mitigation, energy security, and also has some economic benefits. [1] Commonly used renewable energy types include solar energy, wind power, hydropower, bioenergy ...
Returns to scale. In economics, the concept of returns to scale arises in the context of a firm's production function. It explains the long-run linkage of increase in output (production) relative to associated increases in the inputs ( factors of production ). In the long run, all factors of production are variable and subject to change in ...
Flowchart of using successive subtractions to find the greatest common divisor of number r and s. In mathematics and computer science, an algorithm ( / ˈælɡərɪðəm / ⓘ) is a finite sequence of mathematically rigorous instructions, typically used to solve a class of specific problems or to perform a computation. [1]