A Retailer Has a Net Profit of $1,000,000,total Assets of $12,000,000,a

question 6

Multiple Choice

A retailer has a net profit of $1,000,000,total assets of $12,000,000,a 2.5 asset turnover ratio,and a net worth of $5,000,000.What is its financial leverage ratio?

• A) .083 times
• B) .500 times
• C) 2.00 times
• D) 2.40 times
• E) 4.80 times

Identify the factors leading to entry and exit of firms in a competitive market.

Recognize the characteristics of a perfectly competitive market, including demand curve elasticity.

Grasp the concept of economic profits and how they approach zero in the long run in competitive markets.

Understand the role and impact of barriers to entry and exit in competitive industries.