The Ratio of Fixed Assets to Long-Term Liabilities Provides a Measure

question 180

True/False

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

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Definitions:

Consumer Surplus

The gap between the total price consumers are willing to pay for a good or service and the price they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount they receive (market price).

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.