Ahina Industries Is a Division of a Major Corporation

question 4

Multiple Choice

Ahina Industries is a division of a major corporation. Data concerning the most recent year appears below:
-The division's return on investment (ROI) is closest to:

• A) 21.1%
• B) 2.5%
• C) 26.7%
• D) 7.0%

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Definitions:

Immediate Market Period

The length of time during which the producers of a product are unable to change the quantity supplied in response to a change in price and in which there is a perfectly inelastic supply.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, often referred to as the market-clearing price.

Equilibrium Quantity

(1) The quantity at which the intentions of buyers and sellers in a particular market match at a particular price such that the quantity demanded and the quantity supplied are equal; (2) the profit-maximizing output of a firm.