Question: 15
(Choose 1 answer)
If a firm is planning to operate in an environment in which there will be a great deal of variability in the level of
revenues, then the firm should:
A. Structure its costs to have high fixed costs and higher total variable costs.
B. Structure its costs to have high fixed costs and consequently lower per unit variable costs.
C. Structure its costs to have low fixed costs and consequently higher per unit variable costs.
D. Leave the cost structure unchanged.
