Capital theory: investment analysis
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Capital theory: investment analysis book
In the previous seven chapters, we examined the economic information used to build the Architectural Plan for Profit, develop the profit searching rule, and examine economic models of producers, consumers, and markets. The purpose was to help in answering the question “How to use economic information to make better business decisions?” An assumption that was made, although not explicitly, was that time – as a relevant input – is considered to have a zero opportunity cost. All other relevant inputs (e.g. labor) were examined in terms of their opportunity costs with respect to profit. While we included time (i.e. plantation age) as an input in the production process for the Loblolly Pine Plantation case study, we did not examine its impact on the Architectural Plan for Profit explicitly (Figure 8.1).