A Firm That Employs Relatively Large Amounts of Labor- Saving

question 47

Multiple Choice

A firm that employs relatively large amounts of labor- saving equipment in its operations will have a relatively ____ degree of operating leverage.

• A) low
• B) constant
• C) insignificant
• D) high

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Definitions:

Economic Prosperity

A state of economic health and growth, typically characterized by high income levels and low unemployment.

Prices

Monetary value assigned to goods, services, or resources in the market, influenced by supply and demand dynamics.

Production Costs

The total expense incurred in the manufacture of a product, including materials, labor, and overhead.

Residual Reward

The reward or profit remaining after all the costs have been deducted.