Exhibit 22-3 -Refer to Exhibit 22-3.What Is the Average Total Cost of Average

question 86

Multiple Choice

Exhibit 22-3

-Refer to Exhibit 22-3.What is the average total cost of producing 60 units of output?

• A) $21.67
• B) $1.33
• C) $24.17
• D) $12.50

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Definitions:

Noncumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Preferred Stock

A category of corporate ownership that ranks above common stock in terms of asset claims and earnings, usually providing fixed dividend payouts.