Under Which of the Following Conditions Would Higher Market Share

question 16

Multiple Choice

Under which of the following conditions would higher market share be most likely to produce higher profits?

• A)when production volume drops as market share increases
• B)when unit costs drop as market share increases
• C)when production volume increases as market share increases
• D)when unit costs increase as market share increases
• E)when the company charges a break- even price

---

Definitions:

Bonds

Fixed-income investments representing a loan made by an investor to a borrower, typically corporate or governmental, with terms defining the interest rate and maturity date.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold (COGS).

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to an authority as the result of the occurrence of a taxable event.

Dividends Paid

Cash or other forms of payouts made by a company to its shareholders from its earnings.