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Physical Capital: A tangible tool, machine, building or other productive asset that is used to produce other goods or services.
Pollution: Many economic activities involve discharge of waste products (which includes solid waste, air pollution, and water pollution) into natural environment, as a negative side-effect of production.
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
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what will be the effect on price and quantity when supply and demand changes in different directions but same magnitude?
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