Suppose Kate's Great Crete (KGC)has Annual Variable Costs of

question 1

Multiple Choice

Suppose Kate's Great Crete (KGC) has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales quantity?

• A) 20
• B) 2,000
• C) 8,000
• D) 0

---

Definitions:

Dishonoured

Pertains to a financial instrument, like a check or promissory note, that is not paid upon presentation due to insufficient funds or any other reason for non-payment.

Receivables Turnover Ratio

A financial metric that measures how effectively a company collects on its outstanding accounts receivable in a given period.

Liquidity

The ability of an asset to be converted into cash quickly without significant loss of value, indicating a company's capacity to meet its short-term obligations.

Receivables Turnover Ratio

A measure of how efficiently a company collects cash from its credit sales, calculated by dividing net credit sales by average accounts receivable.