Efficiency Ratios

question 52

Multiple Choice

Efficiency ratios:

• A) include the quick ratio, asset turnover ratio, and return on equity.
• B) are used to measure how well the company uses its assets.
• C) are used to measure how liquid the company is.
• D) help answer questions of firm stability.

---

Definitions:

Marginal Product

The additional output that results from adding one more unit of a specific input, keeping all other inputs constant.

Slope

In mathematics and economics, it represents the rate at which one variable changes over the change in another variable, often depicted in graph form.

Isoquant

A line illustrating various input combinations yielding an identical output level according to production theory.

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.