Define Operating income approach
Describe briefly Operating income approach?
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Operating income approach is the approach that proposes the decision of capital structure in the direction of a firm is immaterial and change in leverage or debt does not result in change of total and market price of the firm. It tells that entire cost of capital is independent of degree of leverage. This approach was also formed by David Durand.
Speculators decrease price volatility through, in effect, changing demand curves: (w) out at low prices, and shifting supply curves out at high prices. (x) out at low prices, and shifting supply curves within at low p
Illustrate Measuring unemployment?
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A perfectly competitive industry achieves allocative efficiency since: w) goods and services are produced at the lowest possible cost. x) services and goods are produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the margin
Illustrate the Law of supply?
Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?
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Who owns the factors of production and the method used to coordinate economic activity?
Elucidate the gains that have occurred using the resources as before specialization?
Illustrates how hard it is to define what is “American made” in today’s global economy?
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