Use the Figure Below to Answer the Following Questions

question 35

Multiple Choice

Use the figure below to answer the following questions. Figure 3.2.1
-Point A in Figure 3.2.1 indicates that

• A)$1 is the least that consumers are willing to pay for the 4,000th apple.
• B)consumers will not be in equilibrium if the price of an apple is $1.
• C)consumers will only pay $1 for any apple.
• D)if the price is $1,consumers will plan to buy 4,000 apples.
• E)if the price is more than $1,consumers will buy 9,000 apples.

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Definitions:

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Du Pont Model

The Du Pont Model is a framework for analyzing a company's return on equity (ROE) by breaking it down into three components: profit margin, asset turnover, and financial leverage.

Net Profit Margin

A profitability metric indicating the percentage of revenue left as net income after all expenses, taxes, and costs have been subtracted.

Return On Assets

Return on assets (ROA) is a profitability ratio that measures how efficiently a company can manage its assets to produce profits during a period, calculated by dividing net income by total assets.