If a Company Faces Declining Sales Over Time,it Must Restructure

question 21

Multiple Choice

If a company faces declining sales over time,it must restructure its costs to break-even at a lower volume.In order to carry this out,what costs can be reduced?

• A) variable costs only
• B) fixed costs only
• C) variable and fixed costs
• D) step costs only

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Definitions:

Quantity Demanded

A specific quantity of a good that buyers are interested in purchasing at a certain price point.

Law of Demand

The principle that, ceteris paribus, there is an inverse relationship between the price of a good and the quantity demanded.

Quantity Demanded

The amount of a product or service consumers are willing to buy at a given price.

Demand Curve

A graphical representation showing how the quantity of a good or service demanded by consumers changes at different price levels.