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Determinants of investments:
Expected Rate of Return:
Investment spending is guided by the profit motive; thebusiness sector buys capital goods only when it expects such purchases to be profitable.Real interest rate:
Business firms typically borrow funds to make an investment and to repay their borrowings out of future revenues. Even if they do not borrow, managers know that if they use current revenues to finance investment purchases, they forgo the opportunity to earn interest.The annual opportunity cost of using a cedi to make an investment can therefore be represented by the real interest rate. The real interest rate is the price of using a cedi to make an investment purchase. Thus, the higher the real rate of interest, the less would be the profits to the business after paying interest and the less it will want to invest and vice versa.
How do you calculate marginal revenue, and monopolistic profit?
Explain how diminishing returns differ from diminishing returns to scale. The answer should clearly distinguish among SR (one or more factors are fixed) and LR (where all facto
Look at a recent copy of a newspaper . a. What is the top economic news story? With which of the big questions does it deal? (It must deal with at least one of them and might d
different types of production funtion and curve given by different economist
Qdx=-30p+0.10+4pr+4t
Arc Elasticity is defined below: Arc elasticity measures/calculates the "average" elasticity between two points on the demand curve. The formula is simply given as (change in q
what are jobs of the department of justice and the federal trade commission in business pratices.
CASE STUDY IN RELATION WITH TOTAL REVENUE,AVERAGE REVENUE AND MARGINAL REVENUE
Question 1: The socio economic development of Mauritius has been marked by growth cycles, representing different approaches adopted by Government to meet the internal as well
describe engineering cost theory in detail
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