Firm a employs a high degree of operating leverage; firm b takes a more conservative approach. which of the following comparative statements about firms a and b is true?
a. firm b has a lower break-even point than firm a, but firm a's profit grows faster after the breakeven.
b. firm a has a lower break-even point than firm b, but firm a's profit grows faster after the breakeven.
c. firm a has a higher break-even point than firm b, but firm a's profit grows slower after the breakeven.
d. firm b has a lower break-even point than firm a, and profit grows the same rate for both companies after the break-even point
Answers: 1
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Firm a employs a high degree of operating leverage; firm b takes a more conservative approach. whic...
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