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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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