Refer to the Graph Shown

question 3

Multiple Choice

Refer to the graph shown. The shift from SATC₃ to SATC₄ reflects:

• A) economies of scale.
• B) diseconomies of scale.
• C) diminishing marginal productivity.
• D) increasing marginal productivity.

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a company aims to hold in its accounts to ensure financial stability and operational efficiency.

Pledged Financing

Financing obtained by offering assets as collateral to secure the loan, reducing the lender's risk.

Assignment Of Receivables

The transfer of a company's right to receive money from a debtor to another party.

Accounts Receivable Period

The mean duration a company requires to receive payments from its clients following a sale.