-Refer to Figure 5-1

question 16

Multiple Choice

-Refer to Figure 5-1. If the market price is $1.00, what is the consumer surplus on the fourth burrito?

• A) $0
• B) $0.50
• C) $1.50
• D) $2.25

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Definitions:

Return On Total Assets

A financial ratio that measures how effectively a company is using its assets to generate profit, calculated as net income divided by total assets.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit sales.