Examlex

Solved

Operating Leverage Is Present When a Firm Has Fixed Operating

question 79

True/False

Operating leverage is present when a firm has fixed operating cost.


Definitions:

Breakeven Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and the business is not making a profit.

Price Ceiling

A government-imposed limit on the price charged for a product, to ensure that it remains affordable for consumers.

Price Floor

A minimum price set by the government or an organization for a particular good or service, below which it cannot be sold.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period, with price on the vertical axis and quantity on the horizontal axis.

Related Questions