When a Firm's Cost Structure Consists Principally of Fixed Costs

question 159

Multiple Choice

When a firm's cost structure consists principally of fixed costs,:

• A)it is said to have a great deal of operating leverage.
• B)those costs consist of rent, depreciation, direct labor, management salaries, direct materials, and utilities.
• C)the firm might be a factory with many people and few machines.
• D)All of the above

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Definitions:

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