Exhibit 4-7 
-Exhibit 4-7 depicts the milk market.The horizontal line,P,represents a price ceiling imposed by the government.Which of the following is true?
Definitions:
Return On Investment
A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by the original cost of the investment.
Residual Income
The income that remains after deducting all required costs of capital from operating income.
Net Operating Income
This is the total profit of a company after operating expenses are subtracted from gross income but before income from investments, interest, and taxes are calculated.
Return On Investment
A measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
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