The Trend in Most Companies Is to Have More Variable

question 80

True/False

The trend in most companies is to have more variable costs and fewer fixed costs.

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Definitions:

Spillover Costs

Costs incurred by third parties as a result of economic activities that are not reflected in market transactions.

Concentrated Benefits

Advantages that are significantly focused on a small group rather than being distributed widely across many individuals.

Diffuse Costs

Costs that are spread out over many consumers or taxpayers, making them hard to identify and attribute to any single action.

Median-Voter Model

A theory suggesting that the outcome of majority voting processes will reflect the preferences of the median voter.