A Firm Has a DOL = 2

question 38

Multiple Choice

A firm has a DOL = 2.5. If sales decrease by 20%, then OCF will ____________.

• A) decrease by 20%
• B) increase by 5%
• C) increase by 20%
• D) decrease by 12.5%
• E) decrease by 50%

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Definitions:

Mesophyll

The internal tissues of a leaf, consisting of layers where photosynthesis primarily occurs.

Adventitious Roots

Roots that grow from an unusual place, such as from a stem or leaf, often helping in the propagation and support of plants.

Tracheids

Long, thin cells found in the xylem of vascular plants, serving as basic water-conducting elements and structural support.

Vessel Elements

are elongated cells found in the xylem of plants, facilitating water transport.