IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2011v1p94-105.html
   My bibliography  Save this article

The Neoclassic Theory of Business Investments

Author

Listed:
  • Vaduva Cecilia-Elena

    (Constantin Brancusi University, Romania)

Abstract

Capital and the work are not perfectly replaceable in accomplishing a constant level of income. The continuous addition of capital makes the costmarginal benefit report decrease. The more the firm combines more capital with relatively less work in order to get a quantity given by the production, the more the marginal productivity of the capital decreases. In determining the expected capital stock, we must specify the relevant time period. The expected stock is the stock considered by the firm as being optimal for obtaining a certain income in the future. The long-term capital demand of the firm depending on the normal level of the production is relatively independent of the current level of income and it depends on the expectations regarding the future levels of income. The current production affects the capital demand as much as it affects the expectations on the future incomes.

Suggested Citation

  • Vaduva Cecilia-Elena, 2011. "The Neoclassic Theory of Business Investments," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 94-105, March.
    • Handle: RePEc:cbu:jrnlec:y:2011:v:1:p:94-105
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2011-01/7_CECILIA_ELENA_VADUVA.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    labor; capital; income ; stocks;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2011:v:1:p:94-105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.