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Italian to English translations [PRO] Bus/Financial - Economics
Italian term or phrase:punto di fuga
Hello,
could anyone please help me in translating this expression?
I am working on translating an economic terminology and I've tried to translated it as "vanishing point"
Here's the entire text
Impresa marginale, marginal company
Impresa che opera al limite delle possibilità offerte dal mercato. Il suo punto di fuga coincide con l’ottimo tecnico, per cui ogni minimo abbassamento o innalzamento del prezzo di mercato del bene prodotto ne determina l’uscita o la possibilità di entrata nel mercato stesso.
A company that operates at the limit of the possibilities provided by the market. Its vanishing point overlaps its technical optimum, therefore it could just be induced to enter an industry by a small rise in profitability, or could just be induced to leave the industry by a small worsening in the market conditions.
Explanation: Basically a marginal firm is one where if the price rises by the tinies amount, it cannot cover its variable costs, so it should "shutdown" in English or "fuggire dal mercato".
Wiki explains in Italian:
Quando la retta del ricavo marginale, che coincide con il prezzo, scende al di sotto del minimo della curva del costo variabile medio, non è più conveniente produrre. Tale punto di minimo è detto punto di fuga (dei produttori dal mercato). http://it.wikipedia.org/wiki/Concorrenza_perfetta
And again in English, although not quite so clearly
In the short run, a firm operating at a loss [R < TC (revenue less than total cost) or P < ATC (price less than unit cost)] must decide whether to continue to operate or temporarily shutdown.[14] The shutdown rule states "in the short run a firm should continue to operate if price exceeds average variable costs."[15] Restated, the rule is that for a firm to continue producing in the short run it must earn sufficient revenue to cover its variable costs.[16] The rationale for the rule is straightforward. By shutting down a firm avoids all variable costs.[17] http://en.wikipedia.org/wiki/Perfect_competition#The_shutdow...
I agree with you on the "unfortunate and confusing" nature of the Italian term a little. The confusing issue here is that it is all about variable cost. The idea that you can shutdown (fuggire DALL MERCATO, which is the same thing) while prices remain too high or cost too great) and reopen again tomorrow when terms are more favourable. "Punto di fuga" alone suggests the liquidation/diappearance of the company, but it is short for "punto di fuga dal mercato" = stop selling, stop producing.
@Tovbin "what if a firm operates in several market
20:18 Sep 1, 2011
This is basic economic theory and "punto di fuga" is "shutdown point" whether you flee or shutdown in a given segment or altogether..
In terms of the theory a marginal firm is breaking even. If one single cost anywhere went up it would make require the firm to "fuggire" or "shutdown". It could just shutdown/fuggire partially in/from that segment, which might return the firm to a break-even or profit position. However the translation doesn't change.
"Quando la retta del ricavo marginale, che coincide con il prezzo, scende al di sotto del minimo della curva del costo variabile medio,"
Here we are talking about a glossary of economic terms. The economics in question is pretty basic mircroeconomics and concerns marginal costs and perfect competition. The terms are mathematically defined and there are no alternatives. If I remember correctly Marshall is the key theorist in classifal marginalism. Unfortunately there is little room for humour here Phil. IMHO to translate "vanishing point" would be totally wrong.
Vanishing point is a correct translation, but not in this context. It's used in art to refer to a point towards which the lines in a picture converge.
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Answers
5 hrs confidence: peer agreement (net): +1
shutdown point
Explanation: Basically a marginal firm is one where if the price rises by the tinies amount, it cannot cover its variable costs, so it should "shutdown" in English or "fuggire dal mercato".
Wiki explains in Italian:
Quando la retta del ricavo marginale, che coincide con il prezzo, scende al di sotto del minimo della curva del costo variabile medio, non è più conveniente produrre. Tale punto di minimo è detto punto di fuga (dei produttori dal mercato). http://it.wikipedia.org/wiki/Concorrenza_perfetta
And again in English, although not quite so clearly
In the short run, a firm operating at a loss [R < TC (revenue less than total cost) or P < ATC (price less than unit cost)] must decide whether to continue to operate or temporarily shutdown.[14] The shutdown rule states "in the short run a firm should continue to operate if price exceeds average variable costs."[15] Restated, the rule is that for a firm to continue producing in the short run it must earn sufficient revenue to cover its variable costs.[16] The rationale for the rule is straightforward. By shutting down a firm avoids all variable costs.[17] http://en.wikipedia.org/wiki/Perfect_competition#The_shutdow...
James (Jim) Davis Italy Local time: 19:50 Specializes in field Native speaker of: English PRO pts in category: 340
The translation workplace 
peer agreement (net): +1
