Due to knowledge spillovers, specialized services, and thick labor markets, average costs in this industry decline as it grows, leading to a long-run supply curve.

Which of the following would indicate an improvement in a company's financial position, holding other things constant? a. the inventory and total assets turnover ratios both decline.b. the debt ratio increases.c. the profit margin declines.d. the times-interest-earned ratio declines.e. the current and quick ratios both increase.