If Fixed Costs Increase, but Variable Cost and Price Remain

question 69

Multiple Choice

If fixed costs increase, but variable cost and price remain the same, the break-even point

• A) decreases.
• B) increases.
• C) remains the same.
• D) may increase or decrease depending on sales.

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Definitions:

Second Law

Presumably referencing the Second Law of Thermodynamics, which states that the entropy of any isolated system always increases.

Energy Disperses

A concept in thermodynamics and statistical mechanics where energy spreads out from a localized state to a more widespread and even distribution.

Desertification

Conversion of grassland or woodland to desert.