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Relation between marginal efficiency of capital and marginal efficiency of investment?
MEC is the highest rate of return expected from an additional unit of capital stock over its cost. MEI is the expected rate of return from one additional unit of investmeni.
What is the difference between the marginal product and average product in terms of their impact on production efficiency?
The marginal product measures the change in output when one more unit of input is added, while the average product measures the total output divided by the total input. The marginal product is important for determining the efficiency of production at the margin, while the average product gives an overall picture of efficiency.
What is a level of production in which the marginal production decrease with new investment?
diminishing marginal returns
What is the difference between equi-marginal utility and diminishing marginal utility?
What is the difference between equi-marginal utility and diminishing marginal utility?Read more:What_is_the_difference_between_equi-marginal_utility_and_diminishing_marginal_utility
How do you achieve allocative efficiency?
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
Relation between marginal efficiency of capital and marginal efficiency of investment?
MEC is the highest rate of return expected from an additional unit of capital stock over its cost. MEI is the expected rate of return from one additional unit of investmeni.
What is the difference between the marginal product and average product in terms of their impact on production efficiency?
The marginal product measures the change in output when one more unit of input is added, while the average product measures the total output divided by the total input. The marginal product is important for determining the efficiency of production at the margin, while the average product gives an overall picture of efficiency.
What is a level of production in which the marginal production decreases with new investment?
diminishing marginal returns
What is a level of production in which the marginal production decrease with new investment?
diminishing marginal returns
What level at which the marginal production goes up with new investment?
The level at which marginal production goes up with new investment is generally referred to as the point of diminishing returns. Beyond this point, each additional unit of investment yields a smaller increase in output or productivity. This occurs as resources become more scarce or inefficiently allocated, resulting in a decrease in the marginal return on investment.
What is the difference between equi-marginal utility and diminishing marginal utility?
What is the difference between equi-marginal utility and diminishing marginal utility?Read more:What_is_the_difference_between_equi-marginal_utility_and_diminishing_marginal_utility
How do you achieve allocative efficiency?
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
What is the relevant tax rate for investment decisions?
Marginal Rate
What is marginal profit?
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
Why marginal efficiency of capital decline?
The marginal efficiency of capital declines due to several factors, including diminishing returns on investment, increased costs, and market saturation. As more capital is invested, the additional output generated by each unit of capital tends to decrease, leading to lower profitability. Additionally, if the economy faces uncertainty or rising interest rates, investors may become more cautious, further reducing the attractiveness of new capital investments. Consequently, these factors contribute to a decline in the marginal efficiency of capital over time.
Are municipal bonds a sound form of investing?
Municipal offer a very safe investment for a marginal return,this is considered a good investment.
How is the production function of the diminishing marginal product and constant marginal product an investment opportunity and illustrate the set of equilibrium conditions on a graph?
feedback inhibition
