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- ECONOMIC APPLICATIONS OF IMPLICIT DIFFERENTIATION 1. Substitution of Inputs Let Q = F(L, K) be the production function in terms of labor and capital.
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- Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy .