Firms that have high ﬁxed costs tend to be highly proﬁtable during a recession.

Name: Firms that have high ﬁxed costs tend to be highly proﬁtable during a recession.
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Question

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Firms with high fixed costs may struggle in a recession as they still have to pay those costs even if demand for their products or services decreases. This can lead to lower profits or even losses if they cannot adjust their costs quickly enough.

Firms That Have High ﬁXed Costs Tend to Be Highly