Valentina
Wed Nov 20 2024
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6 answers
1474
What is the MEC approach to investment?
The MEC approach to investment focuses on the marginal efficiency of capital, which measures the expected additional output from investing one more unit of capital. It's a key concept in understanding investment decisions, as investors weigh the expected return rate against the cost of borrowing. The MEC typically decreases as the amount of investment increases, due to diminishing opportunities and marginal returns.
