If Marginal Cost Exceeds Average Total Cost

question 63

Multiple Choice

If marginal cost exceeds average total cost:

• A) average total cost decreases as output increases.
• B) average fixed cost increases as output increases.
• C) average variable cost increases as output increases.
• D) average variable cost decreases as output increases.

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Definitions:

Assets

Resources owned by a company that have economic value and can be converted into cash.

Industry Average

A benchmark measure of the average performance or characteristic of companies within the same industry sector.

Dividend Per Share

The amount of dividend a company pays out for each share of its stock.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue, indicating its financial performance.