Suppose $Q = \sqrt { \bar { K } L }$

question 18

Multiple Choice

Suppose $Q = \sqrt { \bar { K } L }$ in the short-run. The firm's short-run variable cost curve is:

• A) \(S F C = \frac { Q ^ { 2 } } { K }\)
• B) \(S F C = \frac { w Q ^ { 2 } } { \bar { K } } + r \bar { K }\)
• C) \(S F C = w Q ^ { 2 } / -\)
• D) \(S F C = r \bar { K }\)

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Definitions:

Aging Report

A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Allowance for Doubtful Accounts

This is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet, reflecting the estimate of non-collectible amounts due to credit sales.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.

Adjustment

A modification made to financial records to correct or update them.