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    Exam 17: Macroeconomic and Industry Analysis
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    If a Firm's Sales Decrease by 15%, and Profits Decrease
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If a Firm's Sales Decrease by 15%, and Profits Decrease

Question 22

Question 22

Multiple Choice

If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the firm's operating leverage is


A) 1.33.
B) 0.75.
C) 5.
D) −5.

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