Answer to Question #259616 in Microeconomics for Hini

Question

Based on the estimates of the U.S. daily oil demand function in Equation 9.3 and supply function in Equation 9.4, use calculus to determine the change in deadweight loss from a marginal increase in a tariff. evaluated where the tariff is initially zero. (Hint: You are being asked to determine how an area similar to that of C + E in Figure 9.8 changes when a small tariff is initially applied.

Answer 1

It is logical to start the analysis of the company's financial position with an assessment of the short-term perspective - the calculation and interpretation of liquidity and net working capital (PSC) indicators.

From a mathematical point of view, networking capital (Current assets - Short-term liabilities) and total liquidity ratio (Current assets / Short-term liabilities) decrease if short-term liabilities increase faster than current assets.

For management analysis, such an explanation is not relevant, since the growth of short-term borrowed capital is only a consequence of changes in the size of the property, equity, and long-term loans of the organization.