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January 22, 2018 

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SOLVENCY: The condition of a business when liabilities (excluding any ownership equity) are less than assets. In other words, the business is doing fine and able to pay all of it's debts. This is most important when contrasted with the alternative, insolvency.

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DISECONOMIES OF SCALE: Increasing long-run average cost that occurs as a firm increases all inputs and expands its scale of production. This is graphically illustrated by a positively-sloped long-run average cost curve and typically occurs for relatively large levels of production. Diseconomies of scale overwhelm by economies of scale for relatively large production levels. Together, economies of scale and diseconomies of scale cause the long-run average cost curve to be U-shaped.

     See also | long-run average cost | long-run average cost curve | economies of scale | returns to scale | decreasing returns to scale | increasing returns to scale | short-run production | law of diminishing marginal returns | fixed input | variable input |


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DISECONOMIES OF SCALE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: January 22, 2018].


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Additional information on this term can be found at:

WEB*pedia: diseconomies of scale

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MARGINAL REVENUE PRODUCT CURVE

A curve that graphically illustrates the relation between marginal revenue product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the incremental change in total revenue for incremental changes in the variable input. The marginal revenue product curve plays a key role in marginal productivity theory and the economic analysis of factor markets.

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General Electric is the only stock from the original 1896 Dow Jones Industrial Average remaining in the current index.
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