If a Firm Enlarges Its Factory Size and Realizes Higher

question 64

Multiple Choice

If a firm enlarges its factory size and realizes higher average (per unit) costs of production then:

• A) it has experienced economies of scale.
• B) it has experienced diseconomies of scale.
• C) it has experienced constant returns to scale.
• D) the long-run average cost curve slopes downward.
• E) the long-run average cost curve shifts upward.

Grasp the impact of cash management practices on the Cash Conversion Cycle (CCC).

Recognize the consequences of not adhering to offered trade credit discounts.

Understand the factors influencing the choice of short-term vs long-term financing.

Comprehend the significance of working capital policies on a firm's financial health and operations.