Given the Following Information What Is the Quick Ratio?
A)0

question 23

Multiple Choice

Given the following information: $\begin{array}{lr}\text { Inventory } & \$ 500 \\\text { Short-term marketable securities } & 100 \\\text { Cash } & 200 \\\text { Prepaid insurance } & 300 \\\text { Accounts receivable } & 400 \\\text { Currentliabilities } & 400\end{array}$ What is the quick ratio?

• A)0.75 times
• B)1.75 times
• C)2.5 times
• D)3.75 times

---

Definitions:

MR

Marginal Revenue, the increase in revenue that results from the sale of one additional unit of output.

ATC

Average Total Cost, a calculation used in economics to find the total cost per unit of output when all fixed and variable costs are taken into account.

Economic Profits

The profit a company makes after accounting for both its explicit and implicit costs, including opportunity costs.

Pure Monopolies

Markets where a single seller dominates, offering a unique product with no close substitutes, controlling prices and output.