The Contribution Margin Ratio Is

question 59

Multiple Choice

The contribution margin ratio is:

• A)the contribution margin stated as a percentage of sales.
• B)the contribution margin stated as a percentage of profit.
• C)the contribution margin stated as a percentage of total costs.
• D)the contribution margin stated as a percentage of fixed costs.

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Definitions:

Market Power

The ability of a firm or group of firms to influence the price of a product or the conditions of the market.

Inefficiency

The lack of economic efficiency, occurring when resources are not utilized optimally according to certain criteria.

Market Power

The ability of a firm or group of firms to manipulate the price or quantity of a good or service in the market, often through controlling supply or market dominance.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular market.