Which of the Following Must Always Be True as the Quantity

question 165

Multiple Choice

Which of the following must always be true as the quantity of output increases?

• A)Marginal cost must rise.
• B)Average total cost must rise.
• C)Average variable cost must rise.
• D)Average fixed cost must fall.

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Definitions:

Current Liabilities

Obligations or debts that a company must pay within a year from the date of the balance sheet.

Cost Method

An accounting method used to value inventory or investments at their original cost.

Treasury Stock

Refers to the shares that a company has repurchased from the stock market and holds in its own treasury.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.