When Average Total Cost Is at Its Minimum Point

question 7

Multiple Choice

When average total cost is at its minimum point:

• A) marginal cost is also at its minimum point.
• B) marginal cost is equal to zero.
• C) marginal cost is constant.
• D) average total cost is equal to marginal cost.
• E) the firm is maximizing profit.

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Definitions:

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.

SUTA

State Unemployment Tax Act, which mandates unemployment insurance taxes that employers must pay.

Workers' Compensation

A type of insurance that offers medical benefits and replaces wages for workers hurt while performing their job duties.

Injured

This term typically refers to physical harm or damage suffered by a person or entity, not usually a key term in a financial or business context, so NO.