If firm has low fixed costs relative to all other firms

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Reference no: EM131326891

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.

Reference no: EM131326891

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