To prevent burns from heat
Answer:
Relatively more than
Explanation:
As we know,
The levered firm is that firm in which debt is involved whereas unlevered firm is that firm in which there is no debt involved.
As if the EBIT drops, the return on equity drop is relatively more than the ROE of unlevered firms due to involvement and not involvement of debt. As it generated high risk and return which is gradual increases during a given period of time
Answer:
C. a change in marginal cost causes the profit-maximizing level of output to change by the same amount and in the same direction
Explanation:
Kinked demand curve consider that the business may face a double demand curve based on the likely response of other firms to change in the price of product.
it assumes that the change in variable cost may not cause to rise or fall in the profit maximising price in the market.
Due to change in cost the equilibrium price and output of product remains constant
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