Why do economists treat a normal rate of return on invested

Reference no: EM13751294

1) Why do economists treat a normal rate of return on invested capital as an element of fixed costs rather than as a profit?
2) How are "economies of scope" different from "economies of scale?" Give an example of each. Do you see any connection between either of these concepts and the recent merger between Proctor-Gamble & Gilette? Explain.

Reference no: EM13751294

Questions Cloud

Describe a situation of public interest : Describe a situation of public interest in which critical and/or creative thought could have been used for a better outcome. Describe why it is important to think critically and creatively in similar situations.

Describe risks associated with each area : Emergency Plan-Four areas reactionary planning that's necessary-Four areas resiliency planning is appropriate-Describe risks associated with each area

Locate an article about a topic related to epidemiology : One can find epidemiologic studies every day in the news. Using the Internet, news magazine, or newspaper, locate an article about a topic related to epidemiology. Summarize the article in a few paragraphs. Research your insurance carrier (or a popul..

A certified health records specialist at a medical practice : Imagine you are a certified health records specialist at a medical practice and have been asked to create a memo for your office regarding the importance of documentation and coding for billing. Write a 350- to 700-word memo that addresses the follow..

Why do economists treat a normal rate of return on invested : 1) Why do economists treat a normal rate of return on invested capital as an element of fixed costs rather than as a profit? 2) How are "economies of scope" different from "economies of scale?" Give an example of each. Do you see any connection betwe..

Dilemma faces regulators trying to regulate natural monopol : 1. What dilemma faces regulators trying to regulate natural monopolies? What hampered enforcement of the Sherman Act? 2. Political corruption is epidemic in Russia today. What effect does this have on the Russian economy? Compare and contrast bureau..

A manufacturing firm''s production function : 2. Q=L1/2+K1/2+M1/2. For this production function, the marginal products of labor, capital, and materials are MPL =1/(2 L1/2), MPK =1/(2/K1/2), and MPM= 1/(2M1/2). Suppose that the input prices of labor, capital, and materials are w=1, r=1, and m=1, ..

How many unique five-card hands are possible : Question #1 How many nine-digit student identification numbers can be created from letters and numbers if the first four characters must be upper case letters from A to D and the last five must be digits from 0 to 9? Repetition of letters and number..

Summarize the life cycle of a product ( : Summarize the life cycle of a product (Introduction, Progress, Maturity, Decline) and explain how the stage of the life cycle impacts price. Provide two examples of products where you have seen this occur.

User Account

All Pages