An increase in accounts receivable turnover due to an increase in collection efforts will decrease a firm's marginal investment in accounts receivable.

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An increase in accounts receivable turnover means that the firm is collecting its outstanding debts quickly. This translates to a shorter time lag between when credit is given and when payment is received. As a result, the firm's marginal investment in accounts receivable will decrease as it needs to invest less in accounts receivable to maintain its credit services. Therefore, an increase in collection efforts will decrease a firm's marginal investment in accounts receivable.

An Increase in Accounts Receivable Turnover Due to an Increase