A Company Has Current Assets of $77,000,long-Term Assets of $150,000,current

question 112

Multiple Choice

A company has current assets of $77,000,long-term assets of $150,000,current liabilities of $44,000,and long-term liabilities of $35,000.The current ratio is:

• A)0.81.
• B)3.46.
• C)1.75.
• D)2.20.

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Definitions:

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, leading to inefficiencies.

Average Total Costs

The total costs of production divided by the number of units produced, representing the cost per unit.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output varies.

Demand Curve

A graph that represents the relationship between the price of a good and the quantity demanded by consumers at various price levels.