Question
An increase in the credit period allowed to debtors will
likely:Solution
A longer credit period means money remains tied up in receivables for a longer time, which lengthens the cash conversion cycle (A is wrong) and increases the working capital requirement (B is wrong). It also increases the probability that some customers will default on their payments, thereby increasing the risk of bad debts.
For the following demand curve, Q=10P-1 , calculate the profit made by the monopolist when Total cost is Rs.2Q and he sells discrete goods i....
The National Pension System (NPS), which provides retirement savings and pension benefits to individuals—including Central Government employees recrui...
Knife edge problem is associated with the following growth models?
What is the output elasticity of labour in the following production function?
Q = 10L0.5K0.5
A monopolist operates in two distinct markets, Market A and Market B. The firm has determined that consumers in Market A have a very high price elastici...
If the sum of the product of the deviation of X and Y from their means is zero, the correlation coefficient between X and Y is:
The 'Sacrifice Ratio' in the context of the Phillips Curve refers to:
If indirect taxes are subtracted and subsidies are added to Net Domestic Product at market price we get
What do you mean by ‘under conditions of a perfect competition in the product market’?
Under a fixed exchange rate system with perfect capital mobility, what happens when the government increases its spending?
