If Marginal Cost Is Greater Than Average Total Cost, Average

question 76

Multiple Choice

If marginal cost is greater than average total cost, average total cost:

• A) is minimized.
• B) is falling.
• C) will not change.
• D) is rising.

---

Definitions:

Earnings Retention

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.

Discontinues

The process of ceasing production, support, or sale of a product or service.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time.

Continuing Operations

The segments or units of a business that are expected to continue operations into the foreseeable future, as opposed to those segments that are being discontinued or sold.