If a Company Has a Cost Curve of TC =

question 10

Multiple Choice

If a company has a cost curve of TC = 300 + 2Q + Q² and it produces 300 units per day, then its marginal cost is:

• A) $1.00.
• B) $600.
• C) $602.
• D) $2.02.

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Definitions:

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.

Cash Cycle

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

Inventory Period

The average time that goods remain in inventory before being sold, reflecting a company's efficiency in managing inventory.

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made, typically measured in days.