A Supply Curve Shows

question 97

Multiple Choice

A supply curve shows

• A)the quantities sold at different prices.
• B)the marginal cost of producing one more unit of a good or service.
• C)the marginal benefit from buying one more unit of a good or service.
• D)the total cost of producing different quantities of a good or service.

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Definitions:

Operating Leverage

The degree to which a company's net income can be affected by a change in sales, influenced by the proportion of fixed costs in a company's cost structure.

Salesvolume

The total amount of a product sold within a specific period.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, highlighting the impact of fixed costs.

Variable Expenses

Costs that vary directly with the level of production or sales volume.