Excerpt from Optimal Long-Term Investment When Price Depends on Output
Given the diversity of the literature on imperfect product markets,it is useful, before proceeding, to clarify what type of market this analysis seeks to address. Imperfect markets are frequently defined in opposition to perfectly competitive markets which are characterized in two ways (perfect Competition) 1. All sellers face a horizontal demand curve for the product, or 2. The number of sellers is very large. (usually (2) implies that (l) effectively holds for all participants). The imperfect market treated in this paper is one in which the industry total demand curve is downward sloping: the impact of different numbers of market participants on optimal investment decisions will be examined in the course of the analysis.
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Paperback. Condizione: New. Print on Demand. This book assesses the constraints firms face under imperfect market conditions when there is a need for large-scale capital investments to develop resources. The author focuses on how the impact these investments have on industry supply can affect long-term decision-making when it comes to investments. The author demonstrates that the traditional net present value (NPV) method of assessing potential investment opportunities is not sufficient when looking at imperfect markets. They go on to propose a modified approach that takes these imperfections into account, thereby offering an alternative to scenario planning, the current industry standard. The book is especially applicable to real-world investment scenarios and provides a useful framework for understanding resource development from a long-term perspective. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. Codice articolo 9781332273324_0
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