When Average Total Cost Decreases

question 142

Multiple Choice

When average total cost decreases,

• A)marginal cost must be decreasing.
• B)marginal cost must be increasing.
• C)average variable cost must be decreasing.
• D)average variable cost must be increasing.
• E)marginal cost and average variable cost can be increasing or decreasing.

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Definitions:

Vertical Analysis

A financial statement analysis method where each entry for each category is listed as a percentage of a base figure within the statement.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over different periods to identify trends.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data over a series of periods.

Financial Statement Item

Components or elements present in financial statements, including assets, liabilities, equity, revenues, and expenses.