What is the difference between horizontal integration and vertical integration?

July 7, 2024 No Comments

A: When a company wishes to grow through a horizontal integration, it is looking to acquire a similar company in the same industry. It may be seeking to increase its size, diversify its product offerings or services, achieve economies of scale, reduce competition, or gain access to

What is the difference between induced consumption and autonomous consumption?

July 7, 2024 No Comments

A: The first step to determining the difference between autonomous and induced consumption is to look at what each of these terms mean. The key difference between autonomous consumption and induced consumption lies in the factor of income. Autonomous Consumption Autonomous consumption is defined as

What is the difference between inelasticity and elasticity of demand?

July 7, 2024 No Comments

A: Inelasticity and elasticity of demand refer to the degree to which supply and demand respond to a change in another factor, such as price, income level or substitute availability. If the change in demand for a given product corresponds closely to a change in one

What is the difference between a value chain and a supply chain?

July 7, 2024 No Comments

A: The difference between a value chain and a supply chain is that a supply chain is the process of all parties involved in fulfilling a customer request, while a value chain is a set of interrelated activities a company uses to create a competitive

What is the difference between absolute and comparative advantage?

July 7, 2024 No Comments

A: The division and specialization of production in the global economy is shaped by two key principles of capitalism: absolute advantage and comparative advantage. While absolute advantage indicates which nation is best at producing a given good, comparative advantage is an indication of which nation

What is the difference between JIT (just in time) and CMI (customer managed inventory)?

July 7, 2024 No Comments

A: Just-in-time (JIT) inventory management focuses solely on the need to replenish inventory only when it is required, reducing costs associated with inventory on hand. Customer-managed inventory (CMI) management uses the same principles as JIT inventory, but it allows customers to order their own inventories

What is the Difference Between an Industry and a Sector?

July 7, 2024 No Comments

A: The terms industry and sector are often used interchangeably to describe a group of companies that operate in the same segment of the economy or share a similar business type. Although the terms are commonly used interchangeably, they do, in fact, have slightly different

What is the difference between asset-price inflation and economic growth?

July 7, 2024 No Comments

A: Most economists track real economic growth by measuring the change in the gross domestic product (GDP) and then adjusting for inflation. On the other hand, asset-price inflation refers to a nominal rise in the prices of stocks, bonds, derivatives, real estate and other assets;

What is the difference between barter and currency systems?

July 7, 2024 No Comments

A: The primary difference between barter and currency systems is that a currency system uses an agreed-upon form of paper or coin money as an exchange system rather than directly trading goods and services through bartering. Both systems have advantages and disadvantages, although currency systems

What is the difference between consumer surplus and economic surplus?

July 7, 2024 No Comments

A: The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to

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