What is the Degree of Operating Leverage?
What will be an ideal response?
It is an elasticity formula which calculates the percentage change in profit resulting from some percentage change in the level of operation (output and sales).
Economics
You might also like to view...
Refer to the above figure. An increase in aggregate demand between real Gross Domestic Product (GDP) levels Y0 and Y1
A) would not increase output since the economy is already working at full capacity. B) would have no effect on the price level. C) would cause price levels to fall. D) would most likely result in some inflation.
Economics
According to economists, the income elasticity of an inferior good
a. is less than one b. exceeds one c. is zero d. is inelastic e. is negative
Economics