What is ICOR?

Important banking qna for banking aspirants, which is helpful in banking exam

Mar 7, 2015 14:34 IST

• ICOR stands for Incremental Capital Output Ratio

• ICOR is the Ratio of investment to growth which equals to one, divided by the marginal product of Capital.

• The higher the ICOR indicates lower the productivity of capital and lower the ICOR reflects high productivity of Capital.

• ICOR is the topic or instrument by which the Economic growth rate of company decided.

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