Which Statement Is Correct

question 105

Multiple Choice

Which statement is correct?

• A) When the marginal cost curve is above the average cost curve, the average cost curve must be rising.
• B) When the marginal cost curve is below the average cost curve, the average cost curve must be rising.
• C) When MR = MC, the average cost curve is at its minimum point.
• D) When MR = P, the average cost curve is at its minimum point.

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Definitions:

Return On Investment

An indicator used to assess the gain or loss generated from an investment relative to its cost.

Delivery Cycle Time

The period from when a customer order is received to when the finished product is shipped.

Throughput Time

Throughput Time is the total time taken to produce a product, from the start of production to its completion.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to total cycle time.