The Average Total Cost Curve and the Average Variable Cost

question 155

Multiple Choice

The average total cost curve and the average variable cost curve

• A)are closer together as output increases, with average variable cost reaching its minimum level first
• B)are closer together as output increases, with average total cost reaching its minimum level first
• C)are farther apart as output increases, with average variable cost reaching its minimum level first
• D)are farther apart as output increases, with average total cost reaching its minimum level first
• E)are parallel to each other, and reach their minimum levels at the same rate of output

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to prepare financial statements.

Closing Journal Entries

Entries made at the end of an accounting period to zero out temporary accounts and transfer their balances to permanent accounts.

Journal Entries

Records in accounting that document financial transactions in the books of account, showing the debit and credit of each transaction.

Dividends

Payments made by a corporation to its shareholders from its profits or reserves.