Examlex
The company cost of capital is the correct discount rate only for investments that have the same risk as the company's overall business.
General Equilibrium Analysis
An economic framework for understanding how supply and demand interact across multiple markets to determine prices in an entire economy.
Feedback Effects
The process where outcomes or outputs of a system loop back to influence the inputs or initial conditions, often amplifying or dampening effects in the system.
Partial Equilibrium
An analysis of equilibrium within a specific market or sector, ignoring interactions with other markets or the effects of changes in them.
General Equilibrium Analysis
An economic analysis that considers the simultaneous equilibrium of all markets in the economy.
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