Suppose a Firm's Short Run Total Cost Curve Can Be $S T C ( Q ) = 50 Q + 10$

question 52

Multiple Choice

Suppose a firm's short run total cost curve can be expressed as $S T C ( Q ) = 50 Q + 10$ . This firm's short-run average total cost curve can be expressed as:

• A) \(50 + \frac { 10 } { Q }\).
• B) \(50 Q\).
• C) 50 .
• D) 10 .

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Definitions:

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Receivables Turnover

A financial metric that measures how efficiently a company uses its assets by converting accounts receivable into cash over a period.

Debt-Equity Ratio

A financial ratio that represents the comparative deployment of shareholders' equity and debt in asset financing.

Total Asset Turnover

A financial metric indicating how efficiently a company uses its assets to generate sales revenue.