Table 5.1 -Refer to Table 5.1.The Table Above Lists the Highest Prices

question 81

Multiple Choice

Table 5.1
-Refer to Table 5.1.The table above lists the highest prices three consumers, Tom, Dick and Harriet, are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars,

• A)Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts.
• B)Tom will receive $12 of consumer surplus from buying one shirt.
• C)Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each.Harriet will buy no shirts.
• D)Harriet will receive $25 of consumer surplus since she will buy no shirts.

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Definitions:

Minimum Acceptable Return

The minimum return on an investment that is required by an investor or fund manager, taking into account the risk of the investment.

Divisional Assets

Assets that are specific to, or used by, a particular division within a company.

Profit Margin

The ratio of net income earned to total revenue received by a business, indicating the efficiency of converting sales into profit.

Investment Turnover

A ratio measuring the efficiency of a company's use of its assets in generating sales revenue; calculated as sales divided by invested assets.