If Sales Volume Is Less Than the Break-Even Point,the Firm

question 95

Multiple Choice

If sales volume is less than the break-even point,the firm will experience:

• A) an operating loss.
• B) an operating profit.
• C) an increase in plant and equipment.
• D) an increase in share price.

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Definitions:

Consumer Surplus

Rephrased: The economic benefit or satisfaction gained by consumers when they pay a price lower than what they are ready to pay for a product or service.

iTunes Download

The action of obtaining digital media files, including music and applications, from Apple's iTunes Store.

Marginal Cost

The cost incurred by producing one more unit of a good or service.

Marginal Benefit

The gain in satisfaction or utility that comes with the consumption of another unit of a product or service.