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Operating leverage measures the relative use of fixed costs versus variable costs, with a higher operating leverage indicating higher fixed costs.

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Operating leverage measures the relative use of fixed costs versus variable costs, with a higher operating leverage indicating higher fixed costs.

Operating leverage measures the relative use of fixed costs versus variable costs, with a higher operating leverage indicating higher fixed costs. Which of the following statements is/are true for a firm with a high operating leverage (relative to a lower operating leverage)?a. firm will experience relatively larger profits during good timesb. firm will experience relatively smaller profits during good timesc. firm will experience relatively larger losses during bad timesd. firm will experience relatively smaller losses during bad timese. none of the abovef. both b and dg. both a and c

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