Which of the Following Statements About Synfuels Is False

question 42

Multiple Choice

Which of the following statements about synfuels is false?

• A) They can be transported by pipeline.
• B) They are more expensive than coal.
• C) Their combustion, by itself, produces more air pollution than coal.
• D) They are more versatile than coal.
• E) They have large potential supply availability.

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Definitions:

Operating Leverage

Operating Leverage is a measure of how a company's operating income changes with sales volume, indicating the proportion of fixed costs in total costs.

Variable Expenses

Expenses that vary directly with the amount of output or activity level.

Fixed Expenses

Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.