Describe Low financial leverage and low operating leverage
Describe briefly Low financial leverage, low operating leverage?
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This is also a bad situation where both operating leverage and financial leverage are low that results in unwanted consequences. Low degree of such leverages explains that the amount of fixed costs is extremely small and proportion of debts in capital is as well low. The management in this condition may lose number of beneficial opportunities and investments.
Elucidate the changing rates of Appreciation and Depreciation?
Adam Smith and the “typical liberal” economists who followed within his footsteps viewed persistent monopolization and market power as: (1) ineffective and best regulated through government. (2) crucial in finding the rate of technological
Illustrate a fundamental characteristic of demand behavior?
What 2 points are required to emphasis foreign exchange market?
Transaction costs tend to be decreased, prices to consumers are classically stabilized and lowered, and economy-wide efficiency is generally improved through: (1) rigid wage and price controls. (2) central planning that fosters monopo
Adam Smith would have agreed mostly along with the concept which wages are: (i) positively associated to physical comfort when working. (ii) negatively related to the cost of learning the business. (iii) positively associated to the s
Describe the Functional distribution of income?
The idea which a virtue of capitalism is decentralized its decision making emerged while: (1) social philosophers looked for alternatives to feudal kings like economic regulators. (2) Russian imperialism fostered anti-communist sentiment after World W
Question: Max has a utility function U =√ x1x2 where x1 is litres of ice-cream and x2 is boxes of strawberries. The marginal utility of a litre if ice-cream is
Give a brief introduction of the term Cost Principle ?
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