Marginal Cost Equals Average Total Cost

question 16

Multiple Choice

Marginal cost equals average total cost

• A) when average total cost is at its minimum point.
• B) when marginal cost is at its minimum point.
• C) when average variable cost is at its minimum point.
• D) when there are no fixed costs.

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Definitions:

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors or other corporate policies.

Foreign Corporation

A company that is incorporated in a country other than the one in which it is doing business.

Inventory

The total amount of goods and materials a business holds for the purpose of resale or production.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, combining their tax liabilities into one form.