In This Chapter We Are Told That People's Tastes Not

question 10

Multiple Choice

In this chapter we are told that people's tastes not only can differ but must differ. This is because

• A)genetic programming makes it impossible for people to have the same preferences.
• B)people with differing tastes can profitably invade any population of similar tastes.
• C)homogeneous populations become complacent and lose their vigilant qualities.
• D)no two persons could have the same preferences.

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Definitions:

Cost Structure

The mix of fixed and variable cost used by a firm.

Financial Leverage

Utilizing borrowed funds to amplify the prospective gains of an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, affecting its earnings before interest and taxes (EBIT) with changes in sales.

Breakeven Point

The financial position at which total costs equal total revenues, indicating that there is no net loss or gain.