What Does the Operating Ratio Measure

question 15

Multiple Choice

What does the operating ratio measure?

• A) number of seats sold divided by miles operated
• B) operating expense divided by operating income
• C) stock share price divided by the total number of shares outstanding
• D) number of airplanes in the fleet divided by miles flown by type

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service consumers want to buy matches the amount that manufacturers are willing to sell.

Equilibrium Quantity

The quantity of goods or services that is supplied is exactly equal to the quantity demanded at the equilibrium price.

Commodity X

A placeholder term for any generic, interchangeable good or service in economic analysis.

Demand Equation

A mathematical expression that relates the quantity demanded of a good to its price and other factors influencing demand, typically in the form of Qd = f(P, ...), where Qd is quantity demanded, P is price, and ... represents other determinants.