-In the Above Figure, If the Lorenz Curve Were to Move

question 345

Multiple Choice

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

• A) more unequal.
• B) more equal.
• C) unchanged.
• D) More information is needed to determine how this change would affect the income distribution.

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Definitions:

Cost Structure

The composition of fixed and variable costs that a company incurs during the production of goods or services, affecting profitability.

CVP Chart

A graphical representation used in Cost-Volume-Profit analysis to show the relationship between costs, volume of sales, and profit.

Major Components

Principal parts or elements that form the larger system or structure.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no gain or loss for the business.