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In the short run, you cannot sell your capital. To do so would be a violation of "short run" and would instead be the "long run". Case 3 (and I would also contest Case 2) are outright forbidden by the definition of short run. I would note that your question has a lot of narrative to it - which is good in some cases, but you want to keep ...


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Capital investment is generally considered a positive for the economy in which the investment takes place because it increases productivity (more goods or services per unit labor input). To use a simple example, if you had a factory of people who hand sew dresses and then made a capital investment to buy sewing machines, those same people when trained to ...


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One thing that could be made more explicit is that the capital is presumably for export employment and the existence of these employees will require additional local employment. Export employment is a job that produces a product for outside the city, local employment produces a good/service internal to the city. To use your example, if a car factory brings ...


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