A Firm Has an Operating Cycle of 120 Days, an Average

question 166

Multiple Choice

A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's average age of inventory is ________ days.

• A) 80
• B) 50
• C) 90
• D) 70

---

Definitions:

Gasoline Demand

The total quantity of gasoline that consumers are willing and able to purchase at a given price over a certain period.

Price Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price.

Gasoline Demand

Gasoline demand refers to the quantity of gasoline that consumers are willing and able to purchase at various prices during a certain period of time.

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.