An Increase in the Cost of an Input Will Result

question 48

Multiple Choice

An increase in the cost of an input will result in

• A) a leftward shift in the firm's supply curve.
• B) an upward shift of the firm's marginal cost curve.
• C) a leftward shift of the market supply curve.
• D) All of the above.

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Definitions:

Inventory Period

The average time it takes for a company's inventory to be sold and replaced.

Cash Cycle

The duration of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Credit Sales

Transactions where goods or services are sold by a company with payment to be received at a later date.

Operating Cycle

The duration between a company's purchase of inventory and the receipt of cash from accounts receivable.