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Upstream Price
An upstream price is the price of one of the main inputs of production (for processing/manufacturing etc.) or a price quoted on higher market levels (e.g. wholesale markets). Upstream prices are the prices paid by producers (as opposed to consumers), and are directly related to the cost of production. They comprise input prices, or the prices a manufacturer pays to the supplier of raw material, as well as output prices, or the prices a retailer pays to the manufacturer. In contrast, downstream prices are the prices paid by consumers at the retail level. The relationship between upstream prices and downstream prices is largely explained by asymmetric price transmission Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathershttps://web.archive.org/web/20080805205338/http://www.knowledgeproblem.com/archives/001444.htm refers to pricing phenomenon occurring when down .... References Pricing {{Econ-term-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Factor Of Production
In economics, factors of production, resources, or inputs are what is used in the production process to produce output (economics), output—that is, goods and service (economics), services. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function. There are four ''basic'' resources or factors of production: land, labour, capital and entrepreneur (or enterprise). The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods". There are two types of factors: ''primary'' and ''secondary''. The previously mentioned primary factors are land, labour and capital. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour, and capital. The primary factors facilitate production but neither becomes part of the product (as with raw ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer
A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. The term most commonly refers to a person who purchases goods and services for personal use. Consumer rights “Consumers, by definition, include us all," said President John F. Kennedy, offering his definition to the United States Congress on March 15, 1962. This speech became the basis for the creation of World Consumer Rights Day, now celebrated on March 15. In his speech : John Fitzgerald Kennedy outlined the integral responsibility to consumers from their respective governments to help exercise consumers' rights, including: *The right to safety: To be protected against the marketing of goods that are hazardous to health or life. *The right to be informed: To be protected against fraudulent, deceitful, or grossly misleading informatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost-of-production Theory Of Value
In economics, the cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the factors of production (including labor, capital, or land) and taxation. The theory makes the most sense under assumptions of constant returns to scale and the existence of just one non-produced factor of production. With these assumptions, minimal price theorem, a dual version of the so-called non-substitution theorem by Paul Samuelson, holds.Y. Shiozawa, M. Morioka and K. Taniguchi 2019 Microfoundations of Evolutionary Economics, Tokyo, Springer. Under these assumptions, the long-run price of a commodity is equal to the sum of the cost of the inputs into that commodity, including interest charges. Historical development of the theory Historically, the best-known proponent of such theories is probably Adam Smith. Piero Sraffa, in his introduction to the first volu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asymmetric Price Transmission
Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathershttps://web.archive.org/web/20080805205338/http://www.knowledgeproblem.com/archives/001444.htm refers to pricing phenomenon occurring when downstream prices react in a different manner to upstream price changes, depending on the characteristics of upstream prices or changes in those prices. The simplest example is when prices of ready products increase promptly whenever prices of inputs increase, but take time to decrease after input price decreases. Introduction Terminology In business terms, ''price transmission'' means the process in which upstream prices affect downstream prices. ''Upstream prices'' should be thought of in terms of main inputs prices (for processing/manufacturing, etc.) or prices quoted on higher market levels (e.g. wholesale markets). Accordingly, ''downstream prices'' should be thought of in terms of output prices (for processing/manufacturing, etc. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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