Please Refer to the Following Information and Calculate the Debt

question 4

Multiple Choice

Please refer to the following information and calculate the debt ratio. (Round to two decimals.)

• A)0.25
• B)1.89
• C)0.53
• D)4.02

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Definitions:

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread over units decrease with increased production.

Antitrust Action

Legal measures taken by governments to prevent or reduce monopolies and promote competition among businesses.

Economies of Scale

Cost advantages that businesses obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Competitive Industry

An industry characterized by many firms competing against each other, with low barriers to entry and products that are similar but not identical.