If a Computer Company Will Sell a Laptop Only If

question 263

Multiple Choice

If a computer company will sell a laptop only if the price is $400 or higher,then $400 is known as

• A) the minimum supply price.
• B) the input cost price.
• C) the minimum production cost.
• D) the minimum average cost.

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Definitions:

Times Interest Earned Ratio

A financial metric used to measure the company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reflected in income statements as a cost of financing operations.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its interest obligations based on its operating income.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the price paid for using a lender's money or credit.