Consider the two firms Tweedle Dee and Tweedle Dum. Both firms operate in the same industry, but

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Consider the two firms Tweedle Dee and Tweedle Dum. Both firms operate in the same industry, but Tweedle Dum has a greater portion of fixed operating costs relative to variable costs than does Tweedle Dee. Which firm has greater operating risk? Which firm has a higher degree of operating leverage?

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