Threshold price is commonly used in economic terms to define the minimum price at which a particular good or service can be sold. Its spelling can be broken down into its IPA phonetic transcription: /ˈθreshˌhoʊld praɪs/. The first sound is a "th" sound, followed by "resh" and "hold". The "o" in "hoʊld" has a longer sound than the "o" in "price", which is pronounced as "praɪs". The stress falls on the first syllable, giving the word a more pronounced emphasis.
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.
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.