Assume there is sufficient capacity to manufacture the extra units on top of the exiting produced goods, so no additional

fixed costs will be incurred. As long as producing the extra units truly do not cost anything beyond the variable cost per

unit, the company should accept anything over that

a$.$ Average Cost.

b$.$ Total Cost.

c$.$ Marginal Cost.

d$.$ Fixed Cost.

Firms with a high degree of operating leverage are

a$.$ easily capable of surviving large changes in sales volume.

b$.$ usually trading off lower levels of risk for higher profits.

c$.$ significantly affected by changes in interest rates.

d$.$ trading off higher fixed costs for lower per unit variable costs.