Difficulty of defining and using the user cost of capital

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Reference no: EM13743122

1. Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than accounting expense data.

2. Present how to make the most economical downsizing decisions. Include the mix of capital and labor and the theoretical concepts behind the marginal rate of technical substitution in your posts. Also discuss the real world factors which complicate these difficult decisions.

Reference no: EM13743122

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