A Company Had Net Income of $40,000, Net Sales of $300,000

question 150

Multiple Choice

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:

• A) 13.3%; 0.2.
• B) 13.3%; 1.5.
• C) 2.0%; 1.5.
• D) 1.5%; 0.2.
• E) 1.5%; 13.3.

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Definitions:

Sequential Game

A type of game in game theory where players make decisions or select strategies one after another, with subsequent players potentially being aware of the preceding players' moves.

Collude

An agreement between firms in the same industry to limit competition among them by setting prices or output levels.

Limit Pricing

A strategy where a firm sets its price low enough to deter entry by potential competitors into the market, aiming to maintain its dominant position and protect its market share.

Simultaneous Game

A scenario in strategic game theory where all players make their moves at the same time without knowing the moves of the other players.