Abstract
This book is devoted to the modeling of dynamic economic processes. Thus it is essential that the basic principles of economics be explained. These are substitution, time value, and opportunity cost. Capital equipment and energy can be substituted for labor in a production process. People disregard the future depending on how far into the future they imagine important results are to appear. And finally, for example, an architect can work as a carpenter with the wage difference being the opportunity cost of doing so.
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Reference
Ruth M (1993) Integrating economics, ecology, and thermodynamics. Kluwer Academic, Dordrecht
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© 2012 Springer Science+Business Media, LLC
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Ruth, M., Hannon, B. (2012). Introduction to Modeling Economic Processes. In: Modeling Dynamic Economic Systems. Modeling Dynamic Systems. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-2209-9_7
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DOI: https://doi.org/10.1007/978-1-4614-2209-9_7
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Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4614-2208-2
Online ISBN: 978-1-4614-2209-9
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