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User Cost of Capital = Economic Depreciation + (Interest Rate)(Value of Capital) - Example An Airline buys Boeing 737 for $150 million with the expected life of 30
What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities
Difficulties in Measuring Cost 1) Output data may represent an aggregate of different type of products. 2) Cost data may not include opportunity cost. 3) Allocating c
Mercantilism:It is an economic theory from pre-capitalist times which held that a country's prosperity depended on its ability to produce large and persistent surpluses in its fore
Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?
Economic growth and Economic development: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income.A country is
How to solve general equilibrium in pure exchange economy with 2 consumer and 3 commodities
The owner of the sole stage-theatre in the city of Vordervilla has found through experience that the cost of running his 600-seat theatre remains virtually the same irrespective
why does economist agree or disagree?
baumol''s theory
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