In General,if Marginal Cost Is EQUAL to Average Total Cost

question 251

Multiple Choice

In general,if marginal cost is EQUAL to average total cost:

• A)average total cost is increasing.
• B)average total cost is at its maximum.
• C)average total cost is at its minimum.
• D)marginal cost is decreasing.

---

Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any depreciation or amortization.

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered upon disposal.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials and labor expenses.