If the Average Total Cost Curve and the Average Variable

question 268

True/False

If the average total cost curve and the average variable cost curve are both U-shaped,and fixed costs are nonzero,then the minimum point of the average total cost curve must lie above the minimum point of the average variable cost curve.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and shareholders' equity of a company at different points in time for comparison.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.