Ask a New Question

Operating leverage is the extent of which fixed cost are used in a firm's operations. Is there a risk of having both high operating leverage and high financial leverage?

1 answer

There sure is.
for more info, see:
http://www.noble.org/Ag/Economics/OperatingLeverage/index.html

Ask a New Question or answer this question.

Similar Questions

You now want to operate an ice-cream firm. You have all the necessary apparatus to work with. Now the fixed cost( the cost
1. 2 answers
.Part 1: say true or false 1. Generally, increase in leverage result in increased in return and risk. 2. Operating leverage is
1. 1 answer
Healthy food, sell 50-pound bags of grapes to the military for $10.00 a bag. The fixed cost of this operation are $80,000, while
1. 0 answers
A duopoly face market demand Q= 100 - P. The marginal cost of each firm is 40 and fixed costs are zero.a) suppose firm one is
1. 1 answer

more similar questions