A Higher Opportunity Cost of Producing a Good Increases the Supply

question 92

True/False

A higher opportunity cost of producing a good increases the supply of that good.

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Definitions:

Debt-to-equity Ratio

The debt-to-equity ratio is a financial leverage indicator that compares a company's total liabilities to its shareholder equity.

Times Interest

This refers to the times interest earned (TIE) ratio, a financial metric used to measure a company's ability to meet its debt obligations with its earnings before interest and taxes (EBIT).

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that is financed by stockholders' equity.

Acid-test Ratio

A financial metric that evaluates a company's ability to pay off short-term liabilities with its most liquid assets, excluding inventory.