If Marginal Cost Is Above Average Total Cost, Average Total

question 33

Multiple Choice

If marginal cost is above average total cost, average total cost will

• A) be minimized.
• B) decrease.
• C) increase.
• D) remain constant.

---

Definitions:

Capital Commitments

Obligations of a company to spend capital in the future on items such as property, plant, and equipment or other significant investments.

AASB 11

Australian Accounting Standard Board's directive concerning the financial reporting of interests in joint arrangements to ensure transparency and comparability.

Alternative Reporting Formats

Refers to various formats a company may use to present its financial statements, outside of the standard formats.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific project or business activity.