A firm with a higher degree of operating leverage when compared to the industry average implies thatthe
A: Firm has higher variable costs.
B: Firm's profits are more sensitive to changes in sales volume.
C: Firm is more profitable.
D: Firm is less risky.
A: Firm has higher variable costs.
B: Firm's profits are more sensitive to changes in sales volume.
C: Firm is more profitable.
D: Firm is less risky.
举一反三
- In the model of monopolistic competition, compared to a firm with a lower marginal cost, a firm with a higher marginal cost will set a ________ price, produce ________ output, and earn ________ profits. A: higher; less; more B: higher; less; less C: lower; less; less D: lower; more; more
- If a firm's liquidity ratio is higher than industry average, it may indicate the firm has too many current assets.
- 中国大学MOOC: A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm’s average variable cost but greater than the firm’s average fixed cost.
- The more value customers place on a firm's products, the higher the price the firm can charge for those products. A: 正确 B: 错误
- If a firm buys its labor in a competitive market, then a short-run increase in the price of the firm's output will cause the firm to( ) A: hire fewer workers. B: offer a higher wage. C: offer a lower wage. D: hire more workers.