Which of the Following Must Be True If Average Total

question 197

Multiple Choice

Which of the following must be true if average total costs are rising?

• A) Average fixed costs must be rising.
• B) Total fixed costs must be rising.
• C) Average variable costs must be falling.
• D) Marginal costs must be greater than average total costs.

---

Definitions:

Discount Factor(s)

A numerical factor used to calculate the present value of future cash flows, reflecting how future values are worth less in today's terms.

Salvage Received

The amount of money or value received from selling or disposing of obsolete or excess inventory, equipment, or other assets.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments.

Discount Factor(s)

A multiplicative factor used to determine present value of future cash flows, reflecting the time value of money and risk of the cash flows.