An Increase in Gross Margin Over Time Could Indicate What

question 56

Multiple Choice

An increase in gross margin over time could indicate what about the firm:

• A) It has been able to reduce its costs compared to sales
• B) It has been able to raise prices
• C) It has been able to achieve a combination of (a) and (b)
• D) It was forced to lower its prices
• E) a, b, or c

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Definitions:

Farmer's Market

A physical retail marketplace intended for farmers to sell directly to consumers fresh produce and local goods.

Price Elasticity of Demand

The degree to which the quantity demanded of a good changes in response to a change in its price, holding everything else constant.

Air Travel

The act of travelling from one place to another through the atmosphere, typically using airplanes.

Business Travelers

Individuals who travel primarily for business purposes, including conferences, meetings, and client visits.