Psychology Dictionary of ArgumentsHome![]() | |||
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Marginal Efficiency of Capital - Psychology Dictionary of Arguments | |||
Marginal Efficiency of Capital: Marginal Efficiency of Capital (MEC) in economics refers to the expected rate of return on an additional unit of investment. It compares potential profits from new capital to its cost, guiding investment decisions. MEC decreases as more capital is used, reflecting diminishing returns._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
Author | Item | More concepts for author | |
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Keynes, John Maynard | Marginal Efficiency of Capital | Keynes, John Maynard | |
Ed. Martin Schulz, access date 2025-04-22 |