What is Ancillary Revenue? Explained

Ancillary revenue is revenue that is derived from goods or services other than a company’s primary product offering. Examples include concessions at sporting events, baggage handling or seat selection revenue received by airlines, restaurant revenue received by hotel owners, and car-wash services sold by gas stations. Ancillary revenue may exceed primary revenues, leading to changes … Read more

Understanding Allocative Efficiency

So what is meant by Allocative Efficiency? Allocative efficiency occurs when consumer demand is completely met by supply. In other words, businesses are providing the exact supply that consumers want. What Is Allocative Efficiency? In the world of business and finance, allocative efficiency is a state of market equilibrium where both the producer and consumers … Read more