User Account

All Pages

Relationship between price and cost of capital goods

Assignment Help Business Economics
Reference no: EM133082588

PLEASE USE AN AUSTRIAN PERSPECTIVE

On what does the value of capital goods (higher order goods) depend? Can innovation change the value of capital goods that already exist and are part of the production structure? Why is it not valid to use the present price of capital goods to quantify the value of capital? In what sense and under what conditions can we say that the present price of a capital good is equal to its value? What role do expectations play in these conditions? If these conditions are met, what would be the relationship between the price and the cost of capital goods? Remember that cost in economics in general (and in Austrian economics in particular) always refers to opportunity cost.

Reference no: EM133082588

Questions Cloud

Why is it necessary for us to compute our purchases : 1. What are the different considerations when purchasing or buying the materials needed in making the project?
Effect of collusion between bidders in a second-price : In this question we will consider the effect of collusion between bidders in a second-price, sealed-bid auction. There is one seller who will sell one object us
How much food has transformed in the past century : Given how much food has transformed in the past century, what may possibly happen in the future for the food industry? Will it get better or worse in the US?
Specialization in the production : 1. The factor endowments model predicts an increase in wealth inequalities as a result of openness to trade due to the increase in the return on capital.
Relationship between price and cost of capital goods : On what does the value of capital goods (higher order goods) depend? Can innovation change the value of capital goods that already exist and are part of the pro
What are your thoughts on gender-awareness : The idea of gender specific needs and/or treatment is being challenged today. What are your thoughts on gender-awareness?
Different training and development methods : Develop and improve team and individual project team member performance and meet both project and organisational goals
Illustrate how the heckscher-ohlin theorem postulates : Illustrate how the Heckscher-Ohlin theorem postulates the determination of international trade. Provide diagrams where necessary.
What do we mean by root causes of migration : What do we mean by "root causes" of migration? How might the consideration of root causes influence or shift the ways that immigration law and policy are formed

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd