THRESHOLD PRICE Meaning and
Definition
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Threshold price refers to the minimum price level that must be achieved or exceeded in order to trigger a particular action or condition. It is a predetermined boundary or limit that defines the point at which a specific event or outcome is initiated, altered, or terminated.
In the context of economics and business, threshold price commonly pertains to the point at which a specific price level must be reached in order for a transaction or decision to take place. For example, in a sales context, a threshold price may represent the minimum amount a buyer must offer to secure a purchase. If the buyer's offered price falls below the threshold, the seller may reject the offer.
Threshold prices can also apply to government policies, such as import taxes or tariffs. These policies may specify a certain threshold price that imported goods must meet before they become subject to taxation. Similarly, in environmental debates, a threshold price might refer to a minimum cost at which companies are required to invest in cleaner technologies or processes.
Moreover, threshold price can be relevant in financial markets, where it may establish the level at which a security or investment triggers a buying or selling decision. It acts as a critical point or trigger for investors to take action, based on whether the price of a particular asset falls above or below the threshold.
Overall, in different areas, threshold price represents a predetermined price point that serves as a boundary to determine the initiation or alteration of an action, decision, or condition.
Common Misspellings for THRESHOLD PRICE
- rhreshold price
- fhreshold price
- ghreshold price
- yhreshold price
- 6hreshold price
- 5hreshold price
- tgreshold price
- tbreshold price
- tnreshold price
- tjreshold price
- tureshold price
- tyreshold price
- theeshold price
- thdeshold price
- thfeshold price
- thteshold price
- th5eshold price
- th4eshold price
- thrwshold price
- thrsshold price
Etymology of THRESHOLD PRICE
The word "threshold" originated from the Old English word "þrescold" or "þrescwyld", which referred to the piece of wood or stone placed at the bottom of a doorway. It was originally derived from the Proto-Germanic word "threskwalō", which meant "crossbar" or "door-sill".
The term "price" comes from the Middle English word "prys" or "prise", which itself came from the Old French word "pris", meaning "value", "reward", or "prize". This Old French word was derived from the Latin word "pretium", which meant "price" or "value of something".
When combined, the term "threshold price" refers to the minimum or critical price level set for a product or service to achieve a desired result, such as profitability or market entry.
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