Use the Following to Answer Questions: Table: Pollution Abatement -(Table: Pollution Abatement) Refer to the Table

question 227

Multiple Choice

Use the following to answer questions: Table: Pollution Abatement $$\begin{array} { c c c } \hline \text { Firm } & \begin{array} { l } \text { Pollution Level } \\\text { (tons of } \mathrm { SO } _ { 2 } \text { ) }\end{array} & \begin{array} { l } \text { Cost of Removing One } \\\text { Ton of Pollution }\end{array} \\\hline \mathrm { A } & 30 & \$ 100 \\\mathrm {~B} & 30 & \$ 500 \\\hline\end{array}$$
-(Table: Pollution Abatement) Refer to the table. If the government requires each firm in the table to reduce pollution by 2 tons, what is the total cost of reducing 4 tons of pollution?

• A) $400
• B) $2,000
• C) $1,200
• D) $2,400

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales by dividing net sales by total assets.

Total Debt Ratio

A financial ratio that compares a company's total liabilities to its total assets, indicating the proportion of a company's assets that are financed through debt.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by its shareholders' equity.