Is It Possible for a Firm to Have Positive Net

question 91

Multiple Choice

Is it possible for a firm to have positive net income and yet to have cash flow problems?

• A) No, this is impossible since net income increases the firm's cash.
• B) Yes, this can occur when a firm is growing very rapidly.
• C) Yes, this is possible if the firm window-dressed its financial statements.
• D) No, this is impossible since net income and cash are highly correlated.

Explain the concept of marginal cost of labor and how it relates to the wage rate in monopsonistic markets.

Understand the demand and supply dynamics in markets and their impact on pricing and quantity.

Analyze how production functions and demand curves determine profit-maximizing output levels in monopolistic markets.

Explain the effects of supply and demand shifts on market equilibrium.

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