For a Firm with a DOL of 3

question 67

Multiple Choice

For a firm with a DOL of 3.5, an increase in sales of 6 percent will:

• A)increase pretax profits by 3.5 percent.
• B)decrease pretax profits by 3.5 percent.
• C)increase pretax profits by 21.0 percent.
• D)increase pretax profits by 1.71 percent.

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Definitions:

Breakdown Theory

A sociological theory that explains social movements as the collective response of individuals to structural weakness, disruption, or strain in society.

Resource Mobilization Theory

A theory in social movements suggesting that the success of social movements depends on their ability to gather resources, such as time, money, and organizational skills.

Frame Alignment Theory

A sociological theory that explains how social movements create shared understandings and alignments to mobilize and sustain participant involvement.

Solidarity Theory

A social or political theory emphasizing unity and mutual support within a group, especially in the pursuit of common goals or against a common adversary.