The Table Gives Information About the Relationship Between Input Quantities

question 217

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Input Quantity } & \text { Real Domestic Output } \\\hline 100 & 200 \\\hline 150 & 300 \\\hline 200 & 400 \\\hline\end{array}$$ The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. The level of productivity in the economy is

• A) 2.
• B) 0.5.
• C) 4.
• D) 200.

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Definitions:

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.

Operating Income

A metric that calculates the profits realized from a business's core operations, excluding deductions of interest and taxes.

Break-even Point

The point at which total revenue equals total costs, resulting in no profit or loss for the business.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and one has "broken even".