In modified break-even analysis, a firm's net profit does NOT necessarily rise if sales revenues increase because
A) marginal costs may increase.
B) excess capacity may exist.
C) demand may be highly elastic at lower price levels.
D) fixed costs may be constant.

Question

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The Answer of In modified break-even analysis, a firm's net profit does NOT necessarily rise if sales revenues increase because
A) marginal costs may increase.
B) excess capacity may exist.
C) demand may be highly elastic at lower price levels.
D) fixed costs may be constant.

In Modified Break-Even Analysis, a Firm's Net Profit Does NOT