If Marginal Cost Is Greater Than Average Total Cost, Then

question 196

Multiple Choice

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

• A) average total cost is increasing.
• B) average total cost is decreasing.
• C) average total cost is unchanged.
• D) marginal cost is decreasing.

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations from its operating income.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.

Tax Rate

The percentage at which an individual or corporation is taxed.

Installment Note Payable

A liability that represents a loan that is repaid in regular payments over a set period of time.