Question
5. As economists, one is trained to view a firm from the point-of-view of profit-maximization, where firms are profit-maximizers, generally equating marginal costs to marginal
5. As economists, one is trained to view a firm from the point-of-view of profit-maximization, where firms are profit-maximizers, generally equating marginal costs to marginal revenue with respect to production. However, in business, a business manager is trained to evaluate firm performance on the basis of cash flow and the opportunity cost of that cash flow (and hence operating profits). From the point-of-view of a business manager, explain why incremental cash flow are significant in business decision-making and relate this concept to why cash-non-profits-is king.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started