Production and Cost in the Short and Long Run, with Cost Estimation

Production and Cost in the Short and Long Run, with Cost Estimation

Production and Cost in the Short and Long Run, with Cost Estimation", there are two sub-topics:

Downsizing Opportunity cost of capital

Question under each sub-topic:

1. Downsizing:
– Use the concepts from research done on "Production and Cost in the Long Run" to present how to make the most economical downsizing decisions. Include the mix of capital and labor and the theoretical concepts behind the marginal rate of technical substitution in your paper. Also discuss the real world factors which complicate these difficult decisions

2. Opportunity cost of capital:
– Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than accounting expense data.
Therefore in regards to this paper each sub-topic will be a page each, and the last page of the paper should be:

— Select an article from the current financial press that relates to the sub-topics mentioned above, and some more sub-topics(such as: Elasticity of Demand, Supply and Demand with Marginal Analysis, Marginal Cost, Marginal Product, and Time-Series Analysis, etc). Post a brief overview of the article along with any brief comments you may have relative to the article and its implications for a business or the business world.

{Note: You can pick any topic to choose the article from.}

SO;
Page 1: Downsizing
Page 2: Opportunity cost of capital
Page 3: Article from current financial press

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