Operating Leverage Is the Degree to Which an Organisation's Cost

question 11

True/False

Operating leverage is the degree to which an organisation's cost function is made up of Fixed Costs.

---

Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specific period.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level.

Equilibrium

A market condition in which the equilibrium of supply and demand leads to price stability.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, thus balancing supply and demand.