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Firm A generates $1M in revenue, has $500,000 fixed costs, and $300,000 variable costs. Firm B generates $1M in revenue, has $600,000 fixed costs and$200,000
Firm A generates $1M in revenue, has $500,000 fixed costs, and $300,000 variable costs.
Firm B generates $1M in revenue, has $600,000 fixed costs and$200,000 variable costs.
Indicate which firm has the highest operating leverage.
THE CHOICES ARE :-
Both firms have the same operating leverage.
Firm B
Firm A
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