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    Chapter 15 Slide 2

    Topics to be Discussed

    Berapa Besar penggunaan tenaga kerjayang optimal dan tingkat upah yang

    berlaku secara ekonomi bila diketahuiperusahaan menganggap tenaga kerjamerupakan faktor produksi variabel.

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    Chapter 15 Slide 3

    Topics to be Discussed

    Harus dijelaskan dengan 2 pasar yaitupasar output dan pasar input. Mengapa

    demikian ???????? Karena penggunaan faktor input sangat

    bergantung pada kedua pasar secara

    bersama-sama.

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    Chapter 15 Slide 4

    Contoh

    ika pasar outpunya monopoli maka makaoutputyang diproduksi lebih sedikit! dan inisecara langsung akan mempengaruhi jumlah

    serta harga input yang dipergunakan.

    ika pasar outputnya adalah persaingansempurna maka output yang diproduksi lebih

    banyak dan jumlah input yang diminta lebihbesar.

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    Chapter 15 Slide 5

    ika hanya ada satu pembeli"monopsony# maka tingkat upah serta

    jumlah pekerja akan lebih rendahdibandingkan dengan jika pasarinputnya pasar persaingan sempurna.

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    Chapter 15 Slide 6

    $%&'()*+

    $,),%K&+)(M*+

    $,),%

    ,K&%$%&'(K)/

    K&+)(M*+

    Pers. Sempurna,monopoli,monopolistik, oligopoli

    Pers. Sempurna, monopsony,oligopsony,monoposonistik

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    7/91Chapter 15 Slide 7

    $ada teori produksi0

    $enggunaan input optimal 1

    3r 1 M$l3 M$k....................4W !pah"harga input tenaga ker#a

    $ tingkat pengembalian capital"harga %

    &Pl &arginal Product o' labor

    &Pk &arginal Product ' Capital

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    /nput minimal

    M$$l3 1 M$$K3v.................2

    $ers. 2 mejnelaskan 0 minimisasi biayainput yang memerlukan kombinasi dariberbagai input tercapai jika marjinalproduk dari suatu input dibagi hargatersebut sama

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    ika M$k lebih besar dari M$l maka0produsen akan mempergunakan tambahaninput k

    Begitu juga jika M$ lebih besar dari hargainput maka produsen akanlebih cenderunguntuk menaikan jumlah penggunaan input

    sehingga tercapai kondisi M$ 1 Harga input.

    M$53$5 1M$63$6.........M$$n3$n1/3M7.......8

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    10/91Chapter 15 Slide

    .Permintaan pada pasar inputpersaingan sempurna

    ika pasar input adalah pasarpers.sempurna makatingkat upah adalah konstan! sehingga M7 daripenggunaan tenaga kerjajuga konstansebesartingkat upah.

    ika terdapat cukup byk pabrik "pembeli# makaberapapun banyaknya tenaga kerja yg diserap olehsatu pabrik maka tdk akan berpengaruh pada tingkatupah.

    adi dpt digunakan sbg pengganti M7 untukmenentukan jumlah pekerja yang diserap

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    11/91Chapter 15 Slide

    'iketahui memaksimalkan keuntunganadalah M%1M7 !sehingga dapat ditulis

    &P*"P*&Py"Py....+"&C+"&....................-

    tau

    Pi"&Pi...&C&.........................................

    &Pi *& Pi

    &P Pi.........................................................../

    Dimana 0Pi 1arga Input, Po 1arga utput

    &P Perkalian antara marginal Product dr suatuinput dg marginal re$enue dr output ygdiproduksi.

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    12/91Chapter 15 Slide

    $ersamaan 9 dpt dianggap persamaanumum untuk pasar input pers.sempurna

    dg sembarang pasar output. ,kan tetapikrn dlm pasar $ers. )empurna didapatM%1$o!maka0

    M$i .$o 1 $i atau:M$ 1 $i....................................;

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    adi keseimbangan pasar output$ers.)empurna di dpt pd harga input samadengan :alue Marginal $roduct ":M$# .

    ,tau :M$ adalah nilai yg dihasilkan setiappekerja. Mis. )etiap pekerja mampumemproduksi 4< unit dan harga per unit4jika kedua pasarnya adalah $ers. )empurnamaka upah yg diterimah adalah sebesar :M$"nilai pekerja tsb#

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    Karena Kurva :M$ bersifat diminishingreturn "disebabkan oleh turunnya Marginalproduk untukjumlah penggunaan tenagakerja semakin banyak # maka jika upah

    turun akan mengakibatkan keseimbanganbergeser ke titik yg lebih rendah lg yaitupd jumlah input tenaga kerja yg semakin

    besar shg.nilai marginal produk input tsb.)ama dg tingkat upah yg baru atau :M$l1 =

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    Sebagai ilustrasi 2ika tenaga ker#a sbg input $ariabel, kapitaldianggap input tetap dg harga p. "unit %

    !nit % !nit 3 4 &PP3 Po T 5&Pl 6 T7C T5c TC Pro'it(+) (8) (9) (-) () (/) (:) (;) (

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    PD5 o' >+ Paid in the 7uture

    =.=: =.

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    17/91Chapter 15 Slide

    Present Discounted 5alue (PD5)

    :aluing $ayment )treams

    7hoosing a payment stream depends upon

    the interest rate.

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    T6o Payment Streams

    Payment StreamA0 >+== >+== =

    Payment Stream B: >8= >+== >+==

    Today + ?ear 8 ?ears

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    2)(1

    100

    )(1

    100StreamofPDV

    )(1

    100StreamofPDV

    RRB

    RA

    +

    +

    +

    =

    +

    =

    T6o Payment Streams

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    20/91Chapter 15 Slide

    PD5 o' Payment Streams

    PD5 o' StreamA0 >++

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    The 5alue o' 3ost Aarnings

    $': can be used to determine thevalue of lost income from a disability ordeath.

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    The 5alue o' 3ost Aarnings

    )cenario

    Harold ennings died in an auto accident

    anuary 4! 4>9 at @8 years of age.)alary0 A@!

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    23/91Chapter 15 Slide

    The 5alue o' 3ost Aarnings

    uestion

    =hat is the $': of enningsC lost income

    to his family?Must adjust salary for predicted increase

    "g#,ssume an D average increase in salary

    for the past 4< years

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    Chapter 15 Slide

    The 5alue o' 3ost Aarnings

    uestion

    =hat is the $': of enningsC lost income

    to his family?Must adjust for the true probability of

    death "m# from other causes 'erived from mortality tables

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    Chapter 15 Slide

    The 5alue o' 3ost Aarnings

    uestion

    =hat is the $': of enningsC lost income

    to his family?,ssume R1 >D

    %ate on government bonds in 4>8

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    Chapter 15 Slide

    7

    7

    7

    0

    22

    2

    0

    100

    )1(

    )1()1(W

    )1(

    )1()1(W

    )1(

    )1)(1(WWPDV

    R

    mg

    Rmg

    R

    mg

    +

    +

    +

    +

    +

    ++

    +

    ++=

    The 5alue o' 3ost Aarnings

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    Calculating 3ost Wages

    + ;,=== .

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    Chapter 15 Slide

    The 5alue o' 3ost Aarnings

    inding $':

    he summation of column E ill give the

    $': of lost ages "A9@

    as compensation for his death.

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    Chapter 15 Slide

    The 5alue o' a ond

    'etermining the $rice of a Bond

    7oupon $ayments 1 A4

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    Chapter 15 Slide

    Present 5alue o'the Cash 7lo6 'rom a ond

    Interest ate

    PD5o'Cash

    7lo6

    (>thousan

    ds)

    = =.= =.+= =.+ =.8==.

    +.=

    +.

    8.=

    Why does the $alue declineas the rate increases@

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    Chapter 15 Slide

    The 5alue o' a ond

    $erpetuities

    $erpetuitiesare bonds that pay out a fi5ed

    amount of money each year! forever.

    R

    Pa"me#t

    PDV=

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    Chapter 15 Slide

    A''ecti$e ?ield on a ond

    7alculating the %ate of %eturn rom aBond

    $10

    000%1!100!

    100!

    =

    ==

    ==

    =

    R

    PP

    R

    RRP

    P

    $ayment0$erpetuity

    $':

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    Chapter 15 Slide

    A''ecti$e ?ield on a ond

    7alculating the %ate of %eturn roma Bond

    PR

    RR

    RR

    ofi# term&Cal'late

    )1(

    1000!

    )1(

    100!

    )(1!100

    )(1!100PDV*o#dCopo#

    1010

    2

    ++

    ++

    +

    +

    +

    +

    =

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    Chapter 15 Slide

    A''ecti$e ?ield on a ond

    Interest ate

    = =.= =.+= =.+ =.8==.

    +.=

    +.

    8.=

    PD5

    o'Payments(5alueo'ond)

    (>thousands)

    Why do yields di''eramong di''erent bonds@

    The e''ecti$e yield is the interestrate that eEuates the present$alue o' a bondFs payment

    stream 6ith the bondFs market price.

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    Chapter 15 Slide

    The ?ields on Corporate onds

    /n order to calculate corporate bondyields! the face value of the bond andthe amount of the coupon payment mustbe knon.

    ,ssume

    /BM and $olaroid both issue bonds ith aface value of A4

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    Chapter 15 Slide

    The ?ields on Corporate onds

    7losing prices for each uly 28! 4>>>0

    /BM @83 @. 8< >2 -4432$olaroid 44432

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    Chapter 15 Slide

    The ?ields on Corporate onds

    he /BM bond yield0

    ,ssume annual payments

    2>> 1 4< years

    $56+

    )1(100

    )1(3755

    )(1

    5375

    )(1

    5375

    1010

    2

    =

    +

    +

    +

    +

    +

    +

    +

    +

    =

    R

    RR

    RR

    >2

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    Chapter 15 Slide

    The ?ields on Corporate onds

    he $olaroid bond yield0

    $210+

    )1(

    5011

    )1(

    511

    )(1

    115

    )(1

    115106

    77

    2

    =

    +

    +

    +

    +

    +

    +

    +

    +

    =

    R

    RR

    RR

    Why 6as PolaroidR*greater@

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    Chapter 15 Slide

    The Get Present 5alue Criterion'or Capital In$estment Decisions

    /n order to decide hether a particularcapital investment is orthhile a firmshould compare the present value "PV#of the cash flos from the investment tothe cost of the investment.

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    Chapter 15 Slide

    +$: 7riterion

    irms should invest if the PVe5ceeds the

    cost of the investment.

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

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    Chapter 15 Slide

    he *lectric Motor actory "choosing tobuild a A4< million factory#

    !)hould the company invest?

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

    ,ssume all information is certain "norisk#

    R1 government bond rate

    $57+

    )1(1

    )1(96

    )(1

    96

    )(1

    9610,-PV

    2020

    2

    =

    +

    +

    +

    +

    +

    +

    +

    +

    +=

    R

    RR

    RR

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

    Get Present 5alue o' a 7actory

    Interest ate, R= =.= =.+= =.+ =.8=

    /

    GetPresent5

    alue

    (>millions

    )

    -

    8

    =

    8

    -

    /

    ;

    +=The GP5 o' a 'actory is the present

    discounted $alue o' all the cash'lo6s in$ol$ed in building and

    operating it.

    H :.

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    Chapter 15 Slide

    %eal versus +ominal 'iscount %ates

    ,djusting for the impact of inflation

    ,ssume price! cost! and profits are in realterms

    /nflation 1 @D

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

    %eal versus +ominal 'iscount %ates

    ,ssume price! cost! and profits are in real

    termsherefore!

    P1 "4.

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    Chapter 15 Slide

    %eal versus +ominal 'iscount %ates

    %eal R = nominal R - inflation 1 > - @ 1 E

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

    Get Present 5alue o' a 7actory

    Interest ate, R= =.= =.+= =.+ =.8=

    /

    GetPresent5

    alue

    (>millions

    )

    -

    8

    =

    8

    -

    /

    ;

    +=I' R -, the GP5 is

    positi$e. The companyshould in$est inthe ne6 'actory.

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    Chapter 15 Slide

    +egative uture 7ash los

    /nvestment should be adjusted for

    construction time and losses.

    The Get Present 5alue Criterion'or Capital In$estment Decisions

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    Chapter 15 Slide

    *lectric Motor actory

    7onstruction time is 4 year

    A@ million e5penditure todayA@ million e5penditure ne5t year

    *5pected to lose A4 million the first year andA

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    Chapter 15 Slide

    2020

    54

    32

    )1(

    1

    )1(

    96

    )1(

    96

    )1(

    96

    )(1

    5

    )(1

    1

    )(1

    5,5,-PV

    RR

    RR

    RRR

    +

    +

    +

    +

    ++

    ++

    +

    +

    +

    +

    =

    The Get Present 5alue Criterion'or Capital In$estment Decisions

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    'etermining the discount rate for anuncertain environment0

    his can be done by increasing thediscount rate by adding a risk-premiumtothe risk-free rate.

    &ners are risk averse! thus risky future

    cash flos are orth less than those thatare certain.

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    'iversifiable :ersus +ondiversifiable%isk

    'iversifiable riskcan be eliminated byinvesting in many projects or by holding thestocks of many companies.

    +ondiversifiable riskcannot be eliminated

    and should be entered into the riskpremium.

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    Measuring the +ondiversifiable %isk (singthe 7apital ,sset $ricing Model "7,$M#

    )uppose you invest in the entire stock market

    "mutual fund#rm= e5pected return of the stock market

    rf= risk free rate

    rm- rf= risk premium for nondiversifiablerisk

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    Measuring the +ondiversifiable %isk(sing the 7apital ,sset $ricing Model"7,$M#

    7alculating %isk $remium for &ne )tock

    mo.eme#t&

    mar/etretr# to&a&&ettheof

    "&e#&iti.itthemea&re&etaa&&et

    retr#epe'ted

    )(

    1

    1

    ==

    =

    =

    r

    rrrr fmf

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    uestion

    =hat is the relationship beteen thenondiversifiable risk and the value of theasset beta?

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    Given beta! e can determine thecorrect discount rate to use incomputing an assetCs net present value0

    )(3ateDi&'o#t fmf rrr +=

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    'etermining beta

    )tock

    *stimated statistically for each company

    d# t t ' i k

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    Chapter 15 Slide

    d#ustments 'or isk

    'etermining beta

    actory

    =eighted average of e5pected return onthe companyCs stock and the interest onthe debt *5pected return depends on beta

    Caution:he investment should betypical for the company

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    Chapter 15 Slide

    In$estment Decisions by Consumers

    7onsumers face similar investmentdecisions hen they purchase adurable good.

    7ompare futurebenefits ith the currentpurchase cost

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    Chapter 15 Slide

    Benefits and 7ost of Buying a 7ar

    S 1 value of transportation services indollars

    E1 total operating cost3yr

    $rice of car is A2

    %esale value of car is AE!

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    Chapter 15 Slide

    Benefits and 7ost

    662

    )1(

    4000

    )1(

    )(

    )1(

    )(

    )1(

    )(

    )(000%20

    RR

    ES

    R

    ES

    R

    ES

    ES

    +

    +

    +

    ++

    +

    ++

    ++=

    +$:

    In$estment Decisions by Consumers

    Choosing an ir Conditioner

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    Chapter 15 Slide

    Choosing an ir Conditioner

    Buying a ne air conditioner involvesmaking a trade-off.

    ,ir 7onditionerAo price and less efficient "high

    operating cost#

    Choosing an ir Conditioner

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    Chapter 15 Slide

    Choosing an ir Conditioner

    Buying a ne air conditioner involvesmaking a trade-off.

    ,ir 7onditioner High price and more efficient

    Both have the same cooling poer

    ,ssume an year life

    Choosing an ir Conditioner

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    Chapter 15 Slide

    Choosing an ir Conditioner

    iOC

    iC

    R

    OC

    R

    OC

    ROCOCCPDV

    i

    i

    ii

    iii

    ofcostoperatingavergetheis

    ofpricepurchasetheis

    82 )1()1(

    )1(

    +

    +

    +

    +

    +

    ++=

    Choosing an ir Conditioner

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    Chapter 15 Slide

    Choosing an ir Conditioner

    )hould you chooseA or ?

    'epends on the discount rate

    /f you borro! the discount rate ould behigh $robably choose a less e5pensive and

    inefficient unit

    /f you have plentiful cash! the discount rateould be lo. $robably choose the more e5pensive unit

    Intertemporal Production

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    Chapter 15 Slide

    DecisionsDepletable esources

    irmsC production decisions often haveintertemporalaspects---productiontoday affects sales or costs in the

    future.

    Intertemporal Production

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    Chapter 15 Slide

    )cenario

    6ou are given an oil ell containing 4

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    Chapter 15 Slide

    )cenarioPt= price of oil this year

    Pt"41 price of oil ne5t year

    C1 e5traction costs

    R = interest rate

    t/ndifferen/f

    no2oiltheall)ell/f

    groundtheinoiltheKeep/f

    ))(1()(

    ))(1()(

    ))(1()(

    1

    1

    1

    cPRcP

    cPRcP

    cPRcP

    tt

    tt

    tt

    +=

    +

    +

    +

    +

    DecisionsDepletable esources

    Intertemporal Production

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    Chapter 15 Slide

    'o not produce if you e5pect its priceless its e5traction cost to rise faster thanthe rate of interest.

    *5tract and sell all of it if you e5pectprice less cost to rise at less than the

    rate of interest. =hat ill happen to the price of oil?

    DecisionsDepletable esources

    '

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    Price o' an A*haustible esource

    Time

    Price

    4uantity

    Price

    c c

    &arginal A*tractionCost

    T

    PT

    P0 P - c P0

    Demand

    P i ' A h ibl

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    Chapter 15 Slide

    /n a competitive market! Price- !Cmust rise at e5actly the rate of interest.

    =hy?Ho ould producers react if0

    P - C increases faster than R?

    P - C increases sloer than R?

    Price o' an A*haustible esource

    P i ' A h tibl

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    Chapter 15 Slide

    +otice

    P # !C

    /s this a contradiction to the competitiverule that P = !C$ %int:=hat happens to the opportunity cost

    of producing an e5haustible resource?

    Price o' an A*haustible esource

    P i ' A h tibl

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    Chapter 15 Slide

    P = !C

    !C 1 e5traction cost I user cost

    (ser cost 1 P - marginal e5traction cost

    Price o' an A*haustible esource

    P i ' A h tibl

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    Chapter 15 Slide

    Ho ould a monopolist choose theirrate of production?

    hey ill produce so that marginal revenuerevenue less marginal cost rises at e5actlythe rate of interest! or

    "M%tI4- c# 1 "4 I R#"M%t- c#

    Price o' an A*haustible esource

    P i ' A h tibl

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    Chapter 15 Slide

    he monopolist is more conservationistthan a competitive industry.

    hey start out charging a higher price anddeplete the resources more sloly.

    Price o' an A*haustible esource

    esource Production by a &onopolistesource Production by a &onopolist

    1o6 Depletable re

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    Chapter 15 Slide

    1o6 Depletable reDepletable esources@

    7rude oil .E to .@

    +atural gas .E to .@

    (ranium .4 to .2

    7opper .2 to .8Bau5ite .

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    Chapter 15 Slide

    he market structure and changes inmarket demand have had a verydramatic impact on resource prices over

    the past fe decades.

    uestion

    =hy ould oil and natural gas have such ahigh user cost ratio compared to the otherresources?

    1o6 Depletable reDepletable esources@

    1o6 re Interest ates Determined@

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    Chapter 15 Slide

    1o6 re Interest ates Determined@

    he interest rate is the price thatborroers pay lenders to use theirfunds.

    'etermined by supply and demand forloanable funds.

    Supply and Demand 'or 3oanable 7unds

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    Chapter 15 Slide

    S

    1ouseholds supply 'unds toconsume more in the 'utureJ

    the higher the interest rate, themore they supply.

    Supply and Demand 'or 3oanable 7unds

    4uantity o'3oanable 7unds

    R

    Interestate

    DT

    R*

    Q*

    DT= DH+ DF and

    eEuilibrium interestrate is R*.

    DH

    DF

    DHand DF, the Euantity

    demanded 'or loanable'unds by households (1)

    and 'irms, respecti$ely,$aries in$ersely6ith the interest rate.

    Changes In The AEuilibrium

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    Chapter 15 Slide

    Changes In The AEuilibrium

    S

    DT

    R*

    Q*

    During a recession interestrates 'all due to a

    decrease in the demand'or loanable 'unds.

    DT

    Q1

    R1

    4uantity o'3oanable 7unds

    R

    Interestate

    Changes In The AEuilibrium

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    Chapter 15 Slide

    Changes In The AEuilibrium

    S

    DT

    R*

    Q*

    When the 'ederalgo$ernment runs large

    budget de'icits thedemand 'or loanable

    'unds increase.

    Q2

    R2

    DT

    4uantity o'3oanable 7unds

    R

    Interestate

    Changes In The AEuilibrium

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    Chapter 15 Slide

    Changes In The AEuilibrium

    S

    DT

    R*

    Q*

    When the 7ederaleser$e increases

    the money supply, thesupply o' loanable'unds increases.

    S

    R1

    Q1

    4uantity o'3oanable 7unds

    R

    Interestate

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    1o6 re Interest ates Determined@

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    Chapter 15 Slide

    , :ariety of /nterest %ates

    E# 7ommercial $aper %ate

    @# $rime %ate

    9# 7orporate Bond %ate

    1o6 re Interest ates Determined@

    Summary

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    Chapter 15 Slide

    Summary

    , firmCs holding of capital is measuredas a stock! but inputs of labor and ramaterials are flos.

    =hen a firm makes a capitalinvestment! it spends money no! sothat it can earn profits in the future.

    Summary

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    Chapter 15 Slide

    Summary

    he present discounted value "$':# ofA4 paid nyears from no is A43"4 I R#n.

    , bond is a contract in hich a lenderagrees to pay the bondholder a streamof money.

    Summary

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    Chapter 15 Slide

    Summary

    irms can decide hether to undertakea capital investment by applying the+$: criterion.

    he discount rate that a firm uses tocalculate the +$: for an investmentshould be the opportunity cost ofcapital.

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    Summary

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    Chapter 15 Slide

    Summary

    ,n e5haustible resource in the groundis like money in the bank and must earna comparable return.

    Market interest rates are determined bythe demand and supply of loanablefunds.

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    *nd of 7hapter 4@

    In$estment,Time, and

    Capital &arkets