A) Capital structure affects both financial leverage and operating leverage. B) Cost structure affects both financial leverage and operating leverage. C) Capital structure affects financial leverage and cost structure affects operating leverage. D) Capital structure affects operating leverage and cost structure affects financial leverage. E) None of the above is correct.
If consumer desire for product X increases,all of the following will occur except:
A) an increase in the profits of industry X. B) an increase in the quantity of resources employed by industry X. C) an increase in the output of industry X. D) a decrease in the quantity of resources employed in industry X.