An increase in which of the following variables should cause an increase in profit per unit of capital?
A)total wages and salaries
B)total sales
C)the capital stock
D)the ratio of total sales to the capital stock
E) the ratio of total sales to total wages and salaries

Question

Quizplus · Accepted Answer

The ratio of total sales to the capital stock is the measure of efficiency of the capital usage. Therefore, an increase in this ratio indicates the increase in profit per unit of capital.

An Increase in Which of the Following Variables Should Cause