Since the Cost of Using More of Any Resource Is

question 101

Multiple Choice

Since the cost of using more of any resource is ________, viewing any resource's price as zero leads to ________.

• A)positive; underutilization
• B)negative; overutilization
• C)positive; a surplus
• D)positive; overutilization

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Definitions:

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) measures a company's current share price relative to its per-share earnings, indicating the value that investors place on a company's earning power.

Days Sales Outstanding

A measure of the average number of days it takes a company to collect payment after a sale has been made, indicating the effectiveness of its credit and collections policies.

Financial Condition

An overview of a company's financial health, including assets, liabilities, equity, income, and cash flows.

Market Value

The current price at which an asset or service can be bought or sold in an open market.