Profit Margin Is Defined As

question 142

Multiple Choice

Profit margin is defined as:

• A)Revenues divided by net sales.
• B)Net sales divided by assets.
• C)Net income divided by net sales.
• D)Net income divided by assets.
• E)Assets divided by net sales.

Determine the profit-maximizing level of resource utilization in different market structures.

Illustrate how changes in technology and product demand affect the labor market.

Recognize the effects of input prices on the production costs and decision-making of firms.

Explain the concept of derived demand in the context of labor and capital markets.

---

Definitions:

Retained Earnings

Profits that a company keeps or reinvests after dividends are paid out to shareholders, instead of distributing them completely.

Optimal Market Structure

A market configuration that maximizes efficiency and consumer welfare, often characterized by competitive markets, absence of monopolies, and minimal barriers to entry.

Technological Advance

The development of new technologies or the improvement of existing ones, which can lead to increased efficiency, productivity, and economic growth.

Oligopolistic Firms

Companies that operate in an oligopoly, a market structure characterized by a small number of firms controlling the majority of the market share.