Marginal Cost Is ________ Average Variable Cost When ________

question 79

Multiple Choice

Marginal cost is ________ average variable cost when ________.

• A) equal to; average total cost is minimized
• B) less than; total cost is maximized
• C) greater than; average fixed cost is minimized
• D) equal to; average variable cost is minimized.

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of a financial instrument, typically the principal plus any final interest payments.

60-Day Note

A type of short-term debt where the repayment is due 60 days after issuance.

360-Day Year

An accounting simplification that assumes there are 360 days in a year to facilitate easier interest calculations.

Direct Write-Off Method

An accounting practice where bad debts are written off against income at the time they are determined to be uncollectible, instead of being provided for in advance.