The Bigger the Shortage for a Good or Service,the ____________

question 56

Multiple Choice

The bigger the shortage for a good or service,the ____________ the seller of the good or service will or can be to an individual customer _________. (We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)

• A) more polite; without having sales adversely affected
• B) ruder; without having sales adversely affect
• C) more polite; even though sales will be adversely affected
• D) ruder; even though sales will be adversely affected

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments, wages, and insurance fees.

Operating Cash Flow

A measure of the cash generated by a company's regular business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Cash Break-even

The point at which a business's cash inflows match its cash outflows, meaning the business is making just enough to cover its cash operating expenses.