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If a firm has low fixed costs relative to all other firms in the same industry, a large change in sales volume (either up or

If a firm has low fixed costs relative to all other firms in the same industry, a large change in sales volume (either up or down) should have:

a.

no effect in any way on the firms as volume does not effect fixed costs.

b.

None of these.

c.

a smaller change in OCF for the firm versus the other firms.

d.

a larger change in OCF for the firm versus the other firms.

e.

a decreasing effect on the cyclical nature of the business.

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