A Very High Degree of Operating Leverage Indicates a Firm

question 5

Multiple Choice

A very high degree of operating leverage indicates a firm

• A)has high fixed costs.
• B)has a high net income.
• C)has high variable costs.
• D)is operating close to its break-even point.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Tone

The quality or character of sound, or the attitude expressed in writing or speech, conveyed through the choice of words and style.

Air Puff

A method often used in psychological experiments to deliver a quick burst of air as a stimulus or to measure blink reflexes.