Use the Following to Answer Questions $\text {Table: Lindsay's Farm}$

question 296

Multiple Choice

Use the following to answer questions : $\text {Table: Lindsay's Farm}$
$\text {The table provides information about the production}$
$\text { function for Lindsay's Farm, which uses labour and land}$
$\text { to produce its produce. The price of labour is \(\$ 50\) per}$
$\text {worker per week and the price of land is \(\$ 20\) per hectare.}$
$\begin{array}{lcc}\begin{array}{l}\text { Quantity } \\\text { of Land } \\\text { (hectares) }\end{array} & \begin{array}{c}\text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array}{c}\text { Quantity } \\\text { of Produce } \\\text { (bushels) }\end{array} \\\hline 10 & 0 & 0 \\10 & 1 & 50 \\10 & 2 & 100 \\10 & 3 & 140 \\10 & 4 & 170 \\10 & 5 & 190\end{array}$
-(Table: Lindsay's Farm) Use Table: Lindsay's Farm.Lindsay's fixed cost of production is:

• A) $200.
• B) $450.
• C) $2 500.
• D) $2 700.

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales revenue by total assets.

Equity Multiplier

The equity multiplier is a financial ratio that measures a company's leverage by dividing its total assets by its total shareholders' equity, indicating how much of the assets are financed by equity.

Market-To-Book Ratio

A financial valuation metric comparing a company's stock market value to its book value.

Price-Earnings Ratio

A valuation metric that compares a company's share price to its per-share earnings, used to evaluate if a stock is over or under-valued.