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Firms with relatively high nonfinancial fixed costs are said to have a high degree of what? Explain. I know it is operating leverage, but please
Firms with relatively high nonfinancial fixed costs are said to have a high degree of what? Explain.
I know it is operating leverage, but please explain why. I keep reading about it in my textbook, but still don't understand how the operating leverage would increase. I would think it would decrease because it has negative impacts. Please expalin. Thank you.
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