Explain Whether Canadian National Railway's Sales Are Likely to Fluctuate

question 133

Essay

Explain whether Canadian National Railway's sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession.
-Whirlpool Corporation (appliance manufacturer)
-Taco Bell
-Bombardier (aircraft manufacturer)
-EB Games (video game sales)

---

Definitions:

Per-Unit Production Cost

The total expense involved in producing one unit of a product, incorporating both fixed and variable costs.

Economic Profit

A measure of profitability calculated as the revenue minus all costs, illustrating surplus beyond the break-even point.

Marginal Cost

The change in total cost required to produce an additional unit of output.

Average Total Cost

Total cost divided by the number of units produced. It is sometimes called per-unit cost.