Define the Following Terms Briefly and Concisely and Indicate Their

question 232

Essay

Define the following terms briefly and concisely and indicate their importance to the study of economics.
a.entrepreneurship
b.investment
c.capital
d.innovation
e.discounting

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Definitions:

Contribution Margin

The difference between the sales revenue and variable costs of a product, showing how much revenue contributes towards covering fixed costs and generating profit.

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if an activity is ceased.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not affect future business decisions.

Irrelevant Costs

Costs that will not be affected by a decision and should not be considered when making that decision.