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Imperfect Asset substitutability assumes that returns from two assets in different countries differ in equilibrium. The main reason is risk, i.e. If bonds denominated in different currencies have diverse degree of risk, investors will hold very risky assets if and only if the expected return is relatively high.
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What are the types of isoquants in microeconomics?
Linear Isoquant: This type assumes perfect substitutability of factors of production: a given commodity may be produced by using only capital, or only labour, or by an infinite combination of K and L.Input-Output Isoquant: This assumes strict complementarity[that is, zero substitutability] of the factors of production. The isoquant take the shape of a right angle. This type of isoquant is also called 'Leontief isoquant' after Leontief, who invented the input-output ananlysis.Kinked Isoquant: This assmes limited substitutability of K and L. There are only a few processes for producing any one commodity. Substitutability of factors is possibleonly at the kinks. This form is also called 'activity analysis-isoquant' or 'linear-programming isoquant', because it is basically used in linear programming.Smooth , Convex Isoquant: This form assumes continuous substitutability of K and L only over a certain range, beyond which factors cannot substitute each other. The isoquant appears as a smooth curve convex to the origin.
What are the conditions under which an isoquant will not be convex?
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
Differences between the theory of multinational enterprises and conventional trade theory?
The conventional trade theory assumes perfect markets where transaction costs do not exist while the theory of multinational enterprises assume imperfect markets.
Imperfect and perfect flowers?
its a imperfect flower when its done growing and a perfect flower is a full gorwn flower
What are the advantages of an imperfect market?
An imperfect market in which there is widespread price dispersion that can be exploited by marketers is more advantageous to businesses.
What flowers are usually imperfect?
flowers are organic and in organics Nothing is perfectly symmetric (I assume this is what you are talking about) therefore the answer is probably All Flowers
What is the suffix for the word imperfect?
prefix for imperfect
How can you use imperfect in a sentence?
Yes, my teeth are imperfect.
What is the ISBN of Past Imperfect?
The ISBN of Past Imperfect is 0756400120.
When was Past Imperfect created?
Past Imperfect was created in 2001.
When was Imperfect Journey created?
Imperfect Journey was created in 1994.
When was The Imperfect Lover created?
The Imperfect Lover was created in 1921.
What is a good sentence for imperfect?
her flawless complexion was slightly imperfect
Write an antonym by adding a prefix to the word perfect.?
nonperfect, or an older word not used much today is unperfect.
What are the types of isoquants in microeconomics?
Linear Isoquant: This type assumes perfect substitutability of factors of production: a given commodity may be produced by using only capital, or only labour, or by an infinite combination of K and L.Input-Output Isoquant: This assumes strict complementarity[that is, zero substitutability] of the factors of production. The isoquant take the shape of a right angle. This type of isoquant is also called 'Leontief isoquant' after Leontief, who invented the input-output ananlysis.Kinked Isoquant: This assmes limited substitutability of K and L. There are only a few processes for producing any one commodity. Substitutability of factors is possibleonly at the kinks. This form is also called 'activity analysis-isoquant' or 'linear-programming isoquant', because it is basically used in linear programming.Smooth , Convex Isoquant: This form assumes continuous substitutability of K and L only over a certain range, beyond which factors cannot substitute each other. The isoquant appears as a smooth curve convex to the origin.
What is an example of a sentence using the word imperfect?
The imperfect solution was the most timely.
Are sampaguitas perfect or imperfect flowers?
imperfect because it only have stamen
