When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because:a. the revenue per unit will increase.b. the two lines will now cross at zero. c. the profit will increase for the same revenue per unit.d. the total cost line becomes nonlinear.
When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because:a. the revenue per unit will increase.b. the two lines will now cross at zero. c. the profit will increase for the same revenue per unit.d. the total cost line becomes nonlinear.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 11MC
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When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because:
a. the revenue per unit will increase.
b. the two lines will now cross at zero. c. the profit will increase for the same revenue per unit.
d. the total cost line becomes nonlinear.
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