The Following Information Is Provided for Nguyen Company and Northwest

question 169

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. $\begin{array}{lll}\text { (in } \$ \text { millions) }&\text { Nguven Company }&\text { Northwest Corporation }\\\text { Net income } 2017 & \$ 165 & \$ 420 \\\text { Net sales } 2017 & 1,650 & 4,900 \\\text { Total assets } 12 / 31 / 15 & 1,000 & 2,400 \\\text { Total assets } 12 / 31 / 16 & 1,050 & 3,000 \\\text { Total assets } 12 / 31 / 17 & 1,150 & 4,000\end{array}$ If Nguyen and Northwest are in the same industry and the industry average for asset turnover is equal to 1.20 times, which of the following statements is true?

• A)Nguyen is operating more efficiently than the industry.
• B)Northwest is operating more efficiently than Nguyen.
• C)Both Nguyen and Northwest are operating more efficiently than the average company in their industry.
• D)The asset turnover does not address the question of efficient operations.

Understand the impact of free entry and exit on long-term profits in monopolistically competitive markets.

Clarify misconceptions regarding the relationship between price, marginal cost, and average total cost in different market structures.

Explain the role of product differentiation in creating market power for firms in monopolistically competitive markets.

Describe the dynamic adjustment process toward long-run equilibrium in monopolistically competitive markets.

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Definitions:

Movie Stars

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A period marked by World War II's impact on society and culture, including significant shifts in the film industry and entertainment.

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A subgenre of the comedy film that became popular during the Great Depression, known for fast-paced repartee, farcical situations, and often a plot that revolved around romance or courtship.

Preston Sturges

American playwright, screenwriter, and film director, known for his contributions to the comedy genre in the golden era of Hollywood.