When Homer Has 5 Doughnuts,his Marginal Value Is 15¢ Per

question 40

Multiple Choice

When Homer has 5 doughnuts,his marginal value is 15¢ per doughnut.We can conclude that Homer

• A) places a value of 3¢ on each doughnut he owns.
• B) needs to purchase more than 5 doughnuts to reach his optimum.
• C) receives 75¢ worth of total satisfaction from his 5 doughnuts.
• D) would refuse to pay more than 15¢ for a sixth doughnut.

Identify and analyze components of a statement of cash flows.

Understand the interrelations between profitability, asset management, and leverage ratios.

Grasp the implications of changes in financial statement items on financial ratios and business performance.

Recognize the significance of liquidity ratios in assessing short term financial health.