Use the Following to Answer Question

question 283

Multiple Choice

Use the following to answer question
Figure: Crop Yield and Fertilizer
-(Figure: Crop Yield and Fertilizer) The graph shows a hypothetical relationship between tons of fertilizer used and crop yields.Which of the following is NOT correct?

• A) The slope of the curve between one and two tons of fertilizer is approximately 2.
• B) The relationship between fertilizer usage and yield is nonlinear.
• C) Because the relationship is nonlinear,it is difficult to create an economic model describing the relationship between the two variables.
• D) Using more than three tons of fertilizer has minimal effect on yield.

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Definitions:

Units

Units commonly refer to a measure of quantity or to the basic amounts of inventory, production, or other quantifiable elements in business operations.

Return On Capital Employed (ROCE)

A financial ratio that measures a company's profitability and efficiency in using its capital; calculated as EBIT (Earnings Before Interest and Taxes) divided by capital employed.

Capital Structure

The composition of a company's liabilities and shareholders' equity including debt, equity, and any other types of financing.

Tax Bracket

A range of income over which the tax rate is constant.