Operating leverage factor a. represents how responsive a company’s operating income is to changes in volume b. the lowest possible factor is 1, where the company has no fixed expenses (contribution margin / operating income) c. high operating leverage companies have high level of fixed costs d. all of the above

Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.