Average fixed cost is:
a. total cost divided by the number of units produced over a given period.
b. total fixed cost divided by the number of units produced over a given period.
c. the price of a fixed factor of production.
d. fixed cost divided by the number of units of a fixed input employed over a given period.
Question 2
If the P/E ratio is equal to 50, it implies that investors in the stock are willing to pay:
a. 25 for every 2 of the earnings that the company generates during a period.
b. 100 for every 1 of the earnings that the company generates during a period.
c. 500 for every 1 of the earnings that the company generates during a period.
d. 50 for every 1 of the earnings that the company generates during a period.
e. 5 for every 1 of the earnings that the company generates during a period.
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Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...