All Else Being Equal,which of the Following Changes Would Increase

question 101

Multiple Choice

All else being equal,which of the following changes would increase a company's net income?

• A) An increase in fixed costs
• B) A decrease in contribution margin
• C) An increase in variable costs
• D) A decrease in fixed costs

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Definitions:

Price Control

Government regulations that set the maximum or minimum prices for specific goods and services to control inflation or ensure affordability.

Binding

A condition, especially in legal or contractual contexts, that obliges entities to act according to the terms of an agreement or rule.

Labor Shortage

A situation in which employers believe there are insufficient qualified candidates to fill job vacancies, impacting the pace and cost of business operations.

Binding Minimum Wage

A government-set wage floor that is above the equilibrium level, leading to potential surpluses in the labor market, such as unemployment.