Which of the Following Is True of a Firm Having

question 99

Multiple Choice

Which of the following is true of a firm having a high level of fixed costs?

• A) It would have a better chance of making profits than would a company with a low level of fixed costs
• B) It would be more susceptible to profit fluctuations because of volume changes than would a firm with a low level of fixed costs
• C) It must also have high mixed costs
• D) None of these are true

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Definitions:

Openness To Experience

A personality trait characterized by a willingness to try new things, engage in imaginative activities, and embrace novel ideas.

Karen Horney

A psychoanalytic psychologist known for her theory of neurotic needs and her work on feminine psychology.

Sense Of Security

A feeling of safety and freedom from worry or danger.

Affiliation

The need to form relationships and be part of a group; a psychological drive towards social connections and associations.