Refer to the Data Provided in Table 9 -Refer to Table 9

question 84

Multiple Choice

Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1 $$\begin{array} { l l l l l l l } \text { q } & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } & \text { AVC } & \text { ATC } \\\hline 0 & \$ 50 & \$ 0 & \$ 50 & - - & - - & - - \\1 & 50 & 20 & 70 & 20 & 20 & 70 \\2 & 50 & 30 & 80 & 10 & 15 & 40 \\3 & 50 & 45 & 95 & 15 & 15 & 31.67 \\4 & 50 & 62 & 112 & 17 & 15.50 & 28 \\5 & 50 & 90 & 140 & 28 & 18 & 28 \\6 & 50 & 132 & 182 & 42 & 22 & 30.33 \\7 & 50 & 186 & 236 & 54 & 26.57 & 33.71 \\\hline\end{array}$$
-Refer to Table 9.1. In the long run, if cost conditions do not change, this firm will earn a zero economic profit if price is

• A) $10.
• B) $15.
• C) $20.
• D) $28.

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Definitions:

Percentage Increase

The amount of increase in a value or quantity, expressed as a percentage of its original value.

Sales

The exchange of goods or services for money, recognized as revenue by businesses.

Receivables Turnover Ratio

A financial metric used to assess how effectively a company is managing its accounts receivable, calculated by dividing net credit sales by the average accounts receivable.

Profitability Of Receivables

This term refers to the efficiency with which a company can convert its accounts receivable into cash over a specific period, indicating how well it manages credit it extends to customers.