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MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
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The difference between normal and average respiratory rate is simple. Normal is healthy and cannot change and average most certainly can change.
Average is the total amount of tax divided by the total amount of income...it therefore includes all deductions and tax brackets, usually lower % ones, getting to the total as part of it...average. The marginal, is on the NEXT $ of income. So it basically is going to be closer (or exactly) the highest tax rate you pay, being applicable to the last bracket your in, and generally having already used up all dedcutions available, and in fact, maybe losing some because some dedcutions drop off above certain incomes. Clear as mud? Marginal rate...the amount of tax pid on the NEXT $ of income...average rate includes the lower brackets and he tax, or no tax, on the first amounts of income.
Cost of debt is the original cost of borrowing including original interest rate Marginal cost of debt is new loan which extended from the previous one, the interest of which is called marginal cost of debt.
marginal rate of substitution
Marginal Cost funding is the difference in balances when changing a funding rate. An example would be: A. I have 1 Million dollars at 3% and want to change my funding rate to 2%. When I do this I should expect some rate sensitive money to leave due to the lower rate. Let's say that 50% of the money leaves and now there is 500k at 2%. The marginal cost is the difference between these two options. It could be an added cost or as in this example a marginal effect that is a cost savings, but also a lost funding balance of 500k.
marginal rate of substitution
the two difference of curve is radios
diminshing marginal rate of substitution between factors
marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ration of the Marginal Utilities of the 2 goods. marginal rate of transformation is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit ( by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.
Using a hurdle rate can help take the emotion out of defining capital value. This is the advantage of using the marginal cost of capital as the hurdle rate.