-In the Above Figure, the Long-Run Average Cost Curve Exhibits

question 481

Multiple Choice

-In the above figure, the long-run average cost curve exhibits diseconomies of scale

• A) between 5 and 10 units per hour.
• B) between 10 and 20 units per hour.
• C) between 20 and 25 units per hour.
• D) along the entire curve.

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Average Sale Period

The average time taken to convert inventory into sales, also known as inventory turnover period.

Accounts Receivable Turnover

A financial ratio that measures how effectively a company is collecting on its credit sales by dividing net credit sales by average accounts receivable.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.