A Firm Is Experiencing an Increase in Variable Costs

question 35

Multiple Choice

A firm is experiencing an increase in variable costs. What can the firm do to maintain its profitability?

• A) Increase its fixed costs to balance out its increased variable costs.
• B) Decrease its fixed costs to break even sooner.
• C) Raise its price to increase its contribution margin.
• D) Lower its price to gain a greater market share.

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Definitions:

Behavioral Records

Documentation of an individual's actions or behaviors, often used in psychological studies or clinical settings to analyze and understand behavior patterns.

Electroconvulsive Therapy

A medical treatment most commonly used for severe major depression which involves electrically induced seizures for therapeutic effect.

Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to treat depression and other conditions.

Major Depression

A disorder involving disturbances in emotion (excessive sadness), behavior (loss of interest in one’s usual activities), cognition (thoughts of hopelessness), and body function (fatigue and loss of appetite).