Suppose That Two Recent Studies Conclude That Increased Fiber in the Diet

question 65

Multiple Choice

Suppose that two recent studies conclude that increased fiber in the diet does not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:

• A)quantity demanded of high-fiber foods will fall.
• B)demand for high-fiber foods will decrease.
• C)supply of high-fiber foods will increase.
• D)price of high-fiber foods will rise.

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Definitions:

Break-Even Quantity

The amount of product that must be sold to cover the costs of production, resulting in neither a profit nor a loss.

Operating Cash Flow

The amount of cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Variable Cost

Costs that vary directly with the level of production or volume of output, such as materials and labor.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the company's fixed versus variable costs.