Break-even analysis usually assumes all of the following except:
a. in the short run, there is no distinction between variable and fixed costs.
b. revenue and cost curves are straight-lines throughout the analysis.
c. there appears to be perfect competition since the price is considered to remain the same regardless of quantity.
d. the straight-line cost curve implies that marginal cost is constant.
e. both c and d
a
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The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,
A) the cost per mile increases. B) the fall in the cost per mile becomes greater. C) the cost per mile remains unchanged. D) the cost per mile decreases. E) the fall in the cost per mile becomes smaller.
The fee that insurance companies collect in exchange for covering unpredictable costs is called a:
A. prepaid event charge. B. preventative payment. C. premium. D. ultimatum.