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If the price of Nike Air Force 1 sneakers is below the equilibrium price:
Fixed Costs
Costs that remain constant regardless of production or sales volumes, including rent, salaries, and insurance costs.
Operating Leverage
A measure of how a company's operating income responds to a change in sales volume, indicating the proportion of fixed versus variable costs.
Variable Costs
Expenses that vary based on the amount of products or services a company generates.
Break-Even Number
The quantity of products or services a business needs to sell to cover its costs, without making a profit or a loss.
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