If a Firm Wants to Determine Total Cost, It Needs

question 217

Multiple Choice

If a firm wants to determine total cost, it needs

• A)to add its variable costs to its fixed costs.
• B)the prices of inputs and of output.
• C)the variable cost per unit.
• D)the production function and the price of its output.

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Definitions:

Dividend Payout Ratio

This is a financial ratio that measures the percentage of earnings paid to shareholders in the form of dividends.

Net Income

The total profit or loss of a company after all revenues, costs, expenses, and taxes have been accounted for.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Return On Total Assets

A profitability ratio measuring net income produced by total assets during a period by comparing net income to the average total assets.