Which of the Following Would Increase a Firm's Average Total

question 3

Multiple Choice

Which of the following would increase a firm's average total costs?

• A) economies of scale
• B) an increase in input prices
• C) an improvement in technology
• D) an increase in demand for the firm's product

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Definitions:

Credit Scoring

A statistical analysis performed by lenders to assess the credit worthiness of credit applicants.

Credit Policy

A set of guidelines that a company follows to determine the credit terms for its customers, which can influence its accounts receivable and sales.

State Of The Economy

A description of the current economic conditions and indicators such as GDP, unemployment rate, and inflation.

Cost Of Credit

The total amount of interest and other charges a borrower pays over the life of a loan, expressed as a rate of the principal sum borrowed.