In the Following Graph,the Price of Capital Is $12 Per

question 17

Multiple Choice

In the following graph,the price of capital is $12 per unit.How many units of labor should the firm use in order to produce 200 units of output at the least cost?

• A)12 units of labor
• B)18 units of labor
• C)30 units of labor
• D)40 units of labor
• E)22 units of labor

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Definitions:

Price-Earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings.

Return On Total Assets

A financial ratio that indicates how effectively a company is using its assets to generate profit, measured by dividing net income by total assets.

Earnings Per Share

This is a financial ratio that measures the amount of net income earned per share of stock owned.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets, calculated by dividing total revenue by average total assets.