Carolyn Knows Average Total Cost and Average Variable Cost for a Given

question 106

Multiple Choice

Carolyn knows average total cost and average variable cost for a given level of output. Which of the following costs can she not determine given this information?

• A) total cost
• B) average fixed cost
• C) fixed cost
• D) variable cost
• E) Carolyn can determine all of the above costs given the information provided.

---

Definitions:

Marketable Securities

Financial instruments and assets that can be easily sold or converted into cash without a significant loss of value.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the company's assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets, calculated as current assets divided by current liabilities.