Capital Rationing Capital rationing means that there is not sufficient finance (capital) available to support all the projects proposed in an organisation. In an ideal world any project which can earn a positive net present value or earn an internal rate of return greater than the cost of capital should be able to find a source of finance because there are rewards to the providers of capital. However‚ the world is not ideal and there may be restrictions on capital for any of the following reasons:
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four-year programs‚ schools are dumbing down the educational experience. Murray basically states that we deprive those who don’t belong in college an education that will pay off. Sanford J. Ungar argues the misperceptions which exist in our society on how worthless the Liberal Arts are nowadays. Ungar believes anybody can benefit from a college degree‚ especially a Liberal Arts one. College students at one point probably have thought to themselves that college is a waste of time. Even though college
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1. Suppose that the international market for beef is in equilibrium. Describe in a written sentence how the following change to a determinant of supply and/or demand will affect the equilibrium price and quantity. Illustrate each answer with a supply-and-demand diagram depicting the shift(s) and the resulting effect on price and quantity a. Outbreak of mad cow disease kills off much of the cattle stock. b. The price of chicken‚ a substitute‚ declines sharply. c.
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Introduction: Price discrimination or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information‚ perfect substitutes‚ and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage‚ price discrimination can only be a feature of monopolistic and oligopolistic markets‚ where market power can be exercised. However‚ product heterogeneity‚ market frictions
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Economic Analysis of the Current Housing Market ----------------------------------------------------------------------------------------------------------------------- Indicative Assessment Requirements for the Module;- Individual Assignment Examine the factors that determine the price of houses in a free market. How and to what extent could government policies affect house prices? Your research is to be mainly concentrated on UK housing market. However‚ you can also include references
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Market Equilibrium- Asifa Kwong Examine how market equilibrium is determined and explain why governments intervene in markets. Use diagrams to illustrate your answer. Equilibrium refers to the idea that there is no tendency to change‚ and market equilibrium is a situation where the price and the quantity supplied and the quantity demanded of a particular good are equal. The interaction between demand and supply can change the price mechanism which determines the prices and quantity of the goods
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In a capitalist economy‚ all the central problems are solved with the help of price mechanism. In such an economy‚ no individual or a firm deliberately tries to solve the central problems; all economic activities operate automatically and there is no conflict anywhere. The basic reason for all this is that price mechanism brings about co-ordination in various sectors of economy and in various economic activities. The important characteristic of such a system is that it is automatic and there
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ON INDEX AND STOCK PRICE MOVEMENT OF VARIOUS INDUSTRIES IN EQUITY MARKET AT SHAREKHAN CHAPTER – 1 INTRODUCTION CHAPTER: 1 1.1 INTRODUCTION 1.1.1 INDEX AND STOCK PRICE MOVING AVERAGE Individual stock price is compared with the
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business operations‚ from the design of a product to the setting of its price. Product-design issues and pricing considerations are interrelated‚ so they must be examined simultaneously. For example‚ for a higher quality product; you need higher quality materials which will affect a higher cost and needs more time and this will lead to a higher pricing on a product. Also‚ a manager must not price its product out of the market price range. Actions of Competitors: companies must keep an eye on its competitors
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ECO 212 2011 Supply‚ Demand‚ and Price Elasticity Supply and demand are common terms within economics. This also means that each term is dependent on each other. For example if a price goes up‚ the demand comes down and if the demand goes up the price comes down. Equilibrium occurs when both the demand and supply are equal or are in balance with each other. Price elasticity is the “measure of how much one variable responds to change in another economic variable” (Hubbard & O’Brien‚
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