Capital budgeting analysis
Explain why some costs should not be included in a capital budgeting analysis and why externalities as an opportunity cost should be included. Give an example of one specific cost not to include and an example of an externality.
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Write an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right).
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