One Potential Benefit of High Operating Leverage Is That It

question 107

True/False

One potential benefit of high operating leverage is that it can reduce the average cost per unit at high levels of output,thus generating a competitive cost advantage.

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Definitions:

Negative Punishment

A behavioral psychology concept where reducing or taking away a desirable stimulus decreases the likelihood of a behavior recurring.

Positive Reinforcement

A motivational technique involving the addition of a reward following a desired behavior, aiming to increase the likelihood of the behavior being repeated.

Operant Conditioning

A learning process derived from behaviorism theory, involving changes in behavior through the use of rewards or punishments.

Environmental Factors

External elements such as social, economic, and ecological conditions that can affect individuals or organizations.