In the Long Run, Firms in Many Industries Often Experience

question 6

Multiple Choice

In the long run, firms in many industries often experience a falling average total cost curve as a result of:

• A) gains through trade.
• B) increasing marginal returns.
• C) economies of scale.
• D) lower fixed costs.

Recognize how personal and social power affect relationships and exchanges in organizations.

Comprehend the ethical considerations in the exercise of power and influence in organizations.

Understand how political behavior influences organizational dynamics.

Identify tangible symbols of power within an organization according to Michael Korda.

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Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of raw materials and the collection of cash from the sale of products, measuring how efficiently a company manages its working capital.

Inventory Period

The average time it takes for a company to turn its inventory into sales.

Accounts Receivable Period

Also known as days sales outstanding (DSO), it measures the average number of days it takes for a company to collect payment after a sale has been made.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products or services, and collect cash from these sales.