Use the Following Information to Answer Questions

question 75

Multiple Choice

Use the following information to answer questions.
-What is the price-earnings ratio?

• A) 9.1 times
• B) 5.8 times
• C) 2.1 times
• D) 1.7 times

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Definitions:

Marginal Cost

The increment in sum total cost that comes with the production of an additional single unit of a good or service.

Marginal Revenue

The boost in revenue achieved by selling an additional unit of a good or service.

Price Taker

A buyer or seller that is unable to influence the market price of a product or service.

Marginal Revenue Curve

A graphical representation showing how the revenue from selling one more unit of a good or service changes as production volume changes.