This topic is covered in Principles of Microeconomics course and requires proper attention. I will be recording a video on this topic soon to serve you better.
@@SchoolofEcon may you please help me to select important topic for my PhD .. in this sophisticated international economic system how to find topic is challenging task
@@kdkidz6496 First, congratulations on embarking on the great journey of pursuing PhD in Economics. Have you already applied? Are you already in the process of PhD or are you thinking about it as a future endeavor?
@@kdkidz6496 What is your interest? The topic that is best fit for your studies is what you like to do. You can start studying Nobel Economics Laureates to see what their fields are to get a glimpse.
Are rental transfers 2,500,000? Also, can you explain why the long-term total cost is infinite, but there is a 7% discount rate that gives us a value of 143 million? If time is not specified at an ending point and continues to require maintenance YOY forever, then how is it possible to have a discrete value? Why would we calculate the total time cost like this if, after 11 years, the annual 10 mil of maintenance cost equals the original labor and materials cost of 110 mil? Then how can our total time cost be 143 mil if YOY maintenance is 10 mil, which means that the total time cost of 143/10= 14.3 years of money allocated to YOY maintenance cost?
Long term total cost is NOT infinite. An infinite sequence of payment's PDV is NOT infinite. If I get paid $1,000 till infinity, if the interest/discount rate is %5, then PDV = 1,000/ 0.05. I explained this in the video.
Are you asking about this question? "requires 500,000 hours of labor to complete. The labor market is perfectly competitive, and the market wage is $20, but the wage paid for this project is $25." If so, it is (25-20)*500.000 = 5*500,000 = $2.5M
