Table: Profit Margins This Table Shows That Silver, Copper, and Gold Were Some

question 74

Multiple Choice

Table: Profit Margins $$\begin{array} { l r r r r r r r r } \hline \text {Industry }& \begin{array} { l } \text { 1 Day Market } \\\text { Change \% }\end{array} & \text { Cap } & \text { P/E } & \text { RDE \% } & \begin{array} { l } \text { Div, } \\\text { Yield \% }\end{array} & \begin{array} { l } \text { Long-Term } \\\text { Debt to } \\\text { Equity }\end{array} & \begin{array} { l } \text { Price to } \\\text { Book }\end{array} & \begin{array} { l } \text { Net Profit } \\\text { Margin } \\\% ( \text { meg) }\end{array} \\ \hline \begin{array}{l}\text { Closed-end fund } \\\text {-Equity }\end{array} & -0.25 & 46.0 \mathrm{~B} & 0.00 & 0.00 & 3.70 & 29.23 & -1392.53 & 64.30 \\\begin{array}{l}\text { Publishing- } \\\text { periodicals }\end{array} & -1.49 & 23.1 \mathrm{~B} & 21.00 & 27.00 & 5.13 & 10.83 & 8.32 & 52.90\\\text { Closed-end fund } & & & & & & & & \\\text { - Foreign } & 0.77 & 18.1 \mathrm{~B} & 13.90 & 3.70 & 2.45 & 16.90 & 0.48 & 38.30 \\\text { Silver } & 0.44 & 67.8 \mathrm{~B} & 33.30 & 11.10 & 0.26 & 45.16 & 3.74 & 35.10 \\\text { REIT-diversified } & 0.00 & 1919.2 \mathrm{~B} & 0.00 & 11.10 & 6.46 & 69.94 & 1.67 & 35.00 \\\text { Copper } & 0.37 & 209.6 \mathrm{~B} & 19.00 & 26.70 & 2.24 & 31.69 & 3.64 & 23.50 \\\text { Application software } & -0.32 & 629.8 \mathrm{~B} & 18.30 & 24.40 & 1.46 & 33.86 & 11.62 & 22.70 \\\text { Gold } & 0.18 & 2082.0 \mathrm{~B} & 24.50 & 9.70 & 0.96 & 10.90 & 2.55 & 22.00\\\text { Internet information } & -0.95 & 380.6 \mathrm{~B} & 35.00 & 13.70 & 1.19 & 8.04 & 5.47 & 21.30 \\\text { providers } & 0.45 & 310.9 \mathrm{~B} & 16.00 & 73.40 & 4.90 & 209.37 & -8.30 & 20.20\\\text { Industrial metals } \\\text { and minerals }&1.70 & 44067.8 \mathrm{~B} & 20.50 & 19.00 & 1.88 & 27.41 & 4.58 & 19.90\\\text { REIT-Healthcare}\\\text {Facilities }&0.21 & 51.6 \mathrm{~B} & 49.30 & 3.90 & 4.47 & 97.94 & 2.10 & 19.80\\\text { Semiconductor- } \\\text { broad line }& 2.53 & 1175.3 \mathrm{~B} & 11.80 & 23.30 & 2.60 & 26.17 & 3.75 & 19.10 \\\text {Semiconductor- }\\\text { integrated circuits}&-1.23 & 155.2 \mathrm{~B} & 15.50 & 18.70 & 2.59 & 17.24 & 3.46 & 18.80\\\begin{array}{l}\text { Foreign utilities } \\\text { Diversified } \\\text { investments }\end{array} & -0.56 & 46.6 \mathrm{~B} & 11.40 & 24.20 & 3.53 & 76.36 & 36.49 & 17.00 \\& -0.52 & 120.1 \mathrm{~B} & 23.70 & 10.30 & 2.29 & 449.96 & 1.93 & 16.90\end{array}$$ This table shows that silver, copper, and gold were some of the most profitable industries in July 2011. (For each dollar of sales, profit for these industries is 35.1, 23.5, and 22.0 cents, respectively.) According to the elimination principle, what do you expect to happen to these profit margins in the long run?

• A) Profit margins will increase because of increased entry.
• B) Profit margins will increase because of increased exit.
• C) Profit margins will decrease because of increased entry.
• D) Profit margins will decrease because of increased exit.

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Definitions:

Coaction

The intricate pattern by which genes and environment mutually influence one another. The activity of the genes is affected by the environment of the cell that is affected by other levels of the environment including the outside world. One result is that the same complement of genes produces different outcomes in different environments. Also, the same environment can have different effects on outcomes when interacting with different genes.

Genes and Environment

The interplay between genetic predisposition and environmental factors in shaping an individual's characteristics and behaviors.

Massage Therapy

A form of manual therapy involving the manipulation of soft body tissues to enhance health and well-being, alleviate pain, and improve circulation.

Social Interaction

Social Interaction involves the ways in which people respond to one another, ranging from physical exchanges to verbal communication, shaping societal norms and relationships.