The Opportunity Cost of Good a in Terms of Good

question 90

Multiple Choice

The opportunity cost of good A in terms of good B is equal to the

• A) money price of good A minus the money price of good B.
• B) money price of good B minus the money price of good A.
• C) ratio of the money price of good B to the money price of good A.
• D) ratio of the money price of good A to the money price of good B.

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Definitions:

EV/EBITDA Ratio

A valuation metric comparing a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization, highlighting company profitability.

Geographically

Pertaining to or based upon the natural features, population, industries, etc., of regions or places.

Quick Ratio

A liquidity metric indicating a company’s capacity to meet short-term obligations with its most liquid assets without selling inventory.

Common Size Statements

Financial statements that present all line items as percentages of a common base figure rather than in absolute numbers, facilitating comparison across periods and companies.