A Manager Can Improve Return on Assets by How Many

question 62

Multiple Choice

A manager can improve return on assets by how many of the following actions?
Increasing sales
Decreasing costs
Decreasing assets

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Long Run

A period sufficient for all markets and factors to adjust, allowing full analysis of economic conditions without the constraint of fixed inputs.

Coefficient

A numerical or constant factor in a mathematical expression, showing the degree of some change under certain conditions, often used in equations to measure relationships between variables.

Price Elasticity of Supply

This measures how much the quantity supplied of a good changes in response to a change in the price of that good.

Midpoint Formula

A method used in economics to calculate the elasticity of a variable, such as demand or supply, based on changes in price and quantity from a midpoint on a curve.