Powers Company Had Average Operating Assets of $2,000,000 and Sales

question 6

Multiple Choice

Powers Company had average operating assets of $2,000,000 and sales of $1,000,000 in 2010. If the controllable margin was $300,000, the ROI was

• A) 60%
• B) 50%
• C) 30%
• D) 15%

---

Definitions:

Free Entry

A market condition where firms can freely enter or exit the industry without facing significant barriers to entry.

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like bread, pasta, and pastry.

Monopolistically Competitive

Describes a market structure in which many firms sell products that are similar but not identical, allowing for some degree of market power.

Market Structure

The organization and characteristics of a market, including the number and size of sellers, product differentiation, and ease of entry and exit.