If a Large Proportion of a Firm's Costs Is Fixed,a

question 66

True/False

If a large proportion of a firm's costs is fixed,a shortfall in sales will have a magnified effect on the firm's profits.

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Definitions:

George Lyell

This appears to be a mistaken reference. If it intends to refer to Charles Lyell, he was a British lawyer and the foremost geologist of his day, best known for his contributions to the principles of geology and the concept of deep time.

Thomas Malthus

An English economist and demographer known for his theory that population growth will always tend to outrun the food supply and lead to societal collapse.

Influenced Darwin

Refers to the various observations, findings, and scholars that contributed to Charles Darwin’s development of the theory of evolution by natural selection.

Genetic Drift

A mechanism of evolution that leads to random changes in the gene frequencies of a population over time, particularly in small populations.