When Management Selects Production Technologies That Include a High Proportion

question 56

Multiple Choice

When management selects production technologies that include a high proportion of fixed costs, they:

• A)decrease their DOL.
• B)increase their DOL.
• C)decrease their NPV break-even level of sales.
• D)reduce the NPV of their cash flows.

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Definitions:

Morphemes

The smallest units of language that carry meaning or function, including both roots and affixes.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically the arrangement of words and phrases.

Phonemes

Phonemes are the smallest units of sound in a language that can distinguish one word from another in the language's phonological system.

Benjamin Whorf

An American linguist known for his hypothesis that the structure of a language affects its speakers' cognition and worldview.