If Marginal Cost Is Equal to Average Total Cost, Then

question 199

Multiple Choice

If marginal cost is equal to average total cost, then:

• A) average total cost is increasing.
• B) average total cost is at its maximum.
• C) average total cost is at its minimum.
• D) marginal cost is increasing.

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Definitions:

Cash Sales

Transactions where customers pay for goods or services at the time of purchase using cash.

Credit Sales

Transactions where the payment is deferred to a future date, allowing the buyer to receive goods or services before payment is made.

Service Charge

A fee charged to customers for a specific service provided, often seen in banking, hospitality, and service industries.

Factor

A factor refers to an element or condition that contributes to a result; in finance, it could also mean a firm that buys receivables from businesses.