A Firm with $600,000 Fixed Costs and $200,000 Depreciation Is

question 61

Multiple Choice

A firm with $600,000 fixed costs and $200,000 depreciation is expected to produce $225,000 in profits.What is its DOL?

• A) 3.56
• B) 3.67
• C) 4.56
• D) 4.67

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Definitions:

Intelligence

denotes the capacity for learning, understanding, and applying knowledge and skills and the ability to adapt to new situations.

Clayton Act

A piece of U.S. legislation enacted in 1914 aimed at promoting fair competition and preventing monopolies and unethical business practices.

Exclusive Dealing

A contractual arrangement in which a seller agrees to sell its products to only one particular buyer, or a buyer agrees to purchase from only one seller, limiting competition.

Tying Arrangements

A business practice where a seller requires the buyer to purchase other products as a condition of getting the desired product.