The _____ Cost Curve Is NOT Affected by Diminishing Returns

question 119

Multiple Choice

The _____ cost curve is NOT affected by diminishing returns.

• A)average fixed
• B)average variable
• C)average total
• D)marginal

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and labor expenses, adjusting as the volume of production increases or decreases.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers and the terms and conditions for extending credit.

Incremental Cash Flow

The extra money a company gains by embarking on a project or investment.

Credit Policies

Guidelines a company follows to determine credit terms for customers, including who is eligible for credit and on what terms.