Explain the term Operating Leverage
Briefly explain the term Operating Leverage?
Expert
Operating leverage works on fixed cost and variable costs. It examines both of the costs and it stays in the company that has the maximum proportion of fixed operating cost concerning variable operating costs. The company employs fixed assets in operation of the company or vice versa. The company that is dealing in high operating leverage creates more money from further sales if the company's cost does not increase to produce more sales. Such as the software developing company's cost structure remains fixed and inadequate to the development and marketing cost. It does not matter how many components they sell the cost remain fixed. It assists the investor in dealing with the information on the risk analysis of the company. High operating leverage occasionally assists benefiting companies and sometimes remains susceptible to sharp economic and business cycle swings.
Illustrate the changes in Demand, Supply and Equilibrium?
What do you mean by spillover. Write short note on it?
Over the long-run the speculators activities are tend to: (1) decrease the volatility of prices. (2) attract legal attention and result in imprisonment. (3) increase the level and volatility of prices both. (4) yield tremendous profits and raise costs
Give a brief introduction of the term Risk Principle?
Explain how the Circular Flow Model for a Market-Oriented System?
When Gene can make three pairs of cowboy boots per week or one saddle whereas Roy can make either two pairs of boots or two saddles, Gene will form boots whereas Roy makes saddles according to the: (i) Law of Occam’s Razor. (ii) Principle of comparative advantag
Describe two kinds of efficiency Full production imply?
Describe the meaning of the term “invisible hand.”
Evaluate and explain the statements: “The market system is a profit-and-loss economy”
Distinguish clearly between a plant, a firm, and an industry?
18,76,764
1954887 Asked
3,689
Active Tutors
1442433
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!