Document Summary
Economists tend to disagree with measures that interfere with trade on information because they support free trade, arguing that protectionism disrupts competitive advantage and harms the economy more than benefits it. Economists will support business methods that will provide incentive to entrepreneurs with successful tactics with which to monetize information even when the dangers of separation of information from product are imminent. Chapter 17 - the corporate form and the cost of capital. An oil company recently evaluated a proposed investment for improvements in a particular type of refining equipment. According to the analysis, such improvements would require an investment of million and would result in an incremental after-tax cash flow of million per year for nine years following the year of the investment. If the discount rate is 10 percent, what is the net present value of this project: negative . 48 million. Using markets to gather information is quite different than market-based management.
