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Working capital cycle for a trade
Inventories days (time inventories are held before being sold)
Plus
Trade receivables days (how long the credit customers take to pay)
Minus
Trade payables days (how long the company takes to pay its suppliers)
Equals
Working capital cycle (in days)
The economy consists of two consumers, A and B. Both consumers are endowed with one unit of good 1 and one unit of good 2. Consumer A is entirely indi?erent between all consumption
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