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dangina [55]
3 years ago
5

Would a firm with low degree of operating leverage need to sell more units of products to reach break-even point or less? Why?

Business
1 answer:
Leokris [45]3 years ago
6 0

Answer:

The company would need to sell less units of product.

Explanation:

Operating leverage measures the relationship between variable and fixed costs. Those companies with low operating leverage have a larger proportion of variable costs in its total costs structure and need to sell smaller amount of units in order to cover its fixed costs. Since breaking point is the point were profit is equal to zero and where sales income is equal to the total costs, consisting of both fixed and variable costs, it needs to sell less products, as its variable costs increase with the number of units sold.

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A news release for a diet product company reports: There's good news for the 65 million Americans currently on a diet. Its study
dexar [7]

Answer:

C. biased, understating the effectiveness of the diet.

Explanation:

As the company promises the population of America which is too huge, just on the study based on 20 employees of the company itself.

This clearly means that the company is trying to sell the product with false reports as the sample size of study is to small to represent entire American Population.

Further that too the employees could be influenced to get the false results.

As since the employees could be influenced and that the results can be altered accordingly, the report is biased, and is misleading.

6 0
3 years ago
In the long run, the competitive firm's supply curve is the a. entire marginal-cost curve. b. portion of the marginal-cost curve
Mars2501 [29]

The long run will see the supply curve of a completive firm changing to the b. portion of the marginal-cost curve that lies above the average-total-cost curve.

<h3>What is the long-run supply curve in a perfect competition?</h3>

In a perfect competition, a company will only produce goods and services at a level where the marginal cost curve is above the average total cost in the long run.

This means that the supply curve will be the marginal cost curve but only the portion of this curve that is above the long-run average total cost curve.

The reason for this is that in the long-run., all the costs in a perfectly competitive firm are considered variable and so they can afford to avoid supply mishaps in the short term.

In conclusion, option B is correct.

Find out more on the long-run supply curve at brainly.com/question/15869064

#SPJ1

6 0
1 year ago
Which of the following is not an example of a<br>n IDE device??​
insens350 [35]

Answer:

Hard drives

Explanation:

4 0
3 years ago
Yam is a gourmet chef who runs a small catering business in a competitive industry. Yam specializes in making wedding cakes. Yam
mr_godi [17]

Answer:

She should continue producing 20 wedding cakes a month.

Explanation:

From the information in the question

Revenue per unit= Total revenue/Units produced

Revenue per unit= 5000/20= $250

We were given the marginal cost as $200

So our revenue per month ($250) is higher than marginal cost ($200)

Yam is making a profit of $50, so she should continue producing 20 cakes per month

4 0
3 years ago
What website would be the best to use to find the best steakhouse near your home?.
Volgvan
Answer:
Just use G maps and search stakehouse.

Explanation:

8 0
2 years ago
Read 2 more answers
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