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Exact(7)
The selection of materials and development of tools and machines for each operation minimizes the amount of human effort required, maximizes the output per unit of capital investment, reduces the number of off-standard units produced, and reduces raw material costs.
Such a device could be very economic in terms of power output per unit of capital cost.
Capital flow to those products and businesses that provide the highest return per unit of capital invested and out of businesses that erode shareholder value.
Additionally, we assume that the ratio of expected return of investment to the existing capital stock depends on the capital accumulation rate k which is the investment per unit of capital.
Finally, the design is modified to remove previously selected decision variables with low incremental operational savings per unit of capital cost expenditures and then fine-tuned to ensure pressure and tank level constraints are exceeded by a comfortable margin (at least 5%).
The profit of bank per unit of capital π b is given by π b = r l b − i d d h − i a a b − g, π b = Π b / p K, l b = L b / p K, d h = D h / p K, a b = A b / p K, g = G / p K, (16).
Similar(53)
(Market capitalisation per unit of fixed capital is, in fact, the rate of return on capital multiplied by the price-earnings ratio).
Because all profit results from an "exploitation of labour," the rate of profit the amount per unit of total capital outlay depends largely on the number of workers employed.
In the figure below I've assumed that initially the capital-intensive technique requires 0.2 units of labor and 0.8 units of capital per unit of output, while the labor-intensive technique requires 0.8 units of labor and 0.2 units of capital.
Given a constant population growth rate, the growth rate of the stock of capital per capita is also (g), and so is the growth rate of the stock of capital per unit of labor.
All firms use the same production technology of constant returns to scale in capital and labor and are exposed to a positive externality given by the aggregate stock of capital per unit of labor.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com