If Marginal Cost Is Equal to Average Total Cost, Then

question 556

Multiple Choice

If marginal cost is equal to average total cost, then

• A)marginal cost is minimized.
• B)average total cost is minimized.
• C)average variable cost is minimized.
• D)marginal cost is zero.

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Definitions:

Journal Entry

A journal entry is a record in the accounting books that logs a business transaction, indicating the accounts and amounts to be debited and credited.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

Selling Expense

Costs incurred directly and indirectly in making sales, including advertising, shipping, and sales staff salaries.

Goods Sold

The total of merchandise that a company has sold to its customers within a specific period; often referred to as 'sales'.