What Is True of Marginal Cost When Marginal Returns Are

question 27

Multiple Choice

What is true of marginal cost when marginal returns are decreasing?

• A)It is negative and increasing.
• B)It is negative and decreasing.
• C)It is positive and increasing.
• D)It is positive and decreasing.
• E)It is positive and has a constant slope.

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Definitions:

Source Documents

Original records that contain the details necessary to support the transactions entered in an accounting system, such as invoices, receipts, or contracts.

Ledger

A ledger is a comprehensive collection of a company's financial transactions, organized by account, during an accounting period.

Journalized

The process of recording financial transactions in a journal or the book of original entry.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.