If Two Firms Have the Same Sales Prices for Their

question 76

Multiple Choice

If two firms have the same sales prices for their merchandise once fixed costs are covered, the firm with a higher variable cost rate will have:

• A) Greater increases in profits as sales increase
• B) Smaller increases in profits as sales increase
• C) The same increase in profits as sales increase
• D) None of these are correct

---

Definitions:

Industry Versus Inferiority

A developmental stage proposed by Erik Erikson where children, typically between ages 6 and 11, develop a sense of competence and perseverance through social interactions and learning new skills, or may feel inadequate and inferior.

Separation Anxiety

A disorder characterized by excessive anxiety regarding separation from home or from people to whom the individual has a strong emotional attachment.

Cultural Variations

Differences in practices, traditions, and beliefs among various cultural groups, reflecting the diversity of human societies.

Neglecting Aspects

Overlooking or failing to consider important elements or factors.