Multiple Choice
Which of the following is true of a firm having a high level of fixed costs?
A) It would have a better chance of making profits than would a company with a low level of fixed costs
B) It would be more susceptible to profit fluctuations because of volume changes than would a firm with a low level of fixed costs
C) It must also have high mixed costs
D) None of these are true
Correct Answer:
Verified
Correct Answer:
Verified
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