Exhibit 21-4 ​

question 7

Multiple Choice

Exhibit 21-4
​

-Refer to Exhibit 21-4. Curve A is a(n) __________ cost curve.

• A)marginal
• B)average variable
• C)average total
• D)average fixed

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Definitions:

Incidental Beneficiary

A person or entity who unintentionally gains a benefit from a contract between two other parties, though the contract was not specifically intended for their benefit.

Contractual Rights

Legal entitlements derived from agreements between parties that are enforceable by law.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially when the contract's purpose is to repay a debt or obligation.

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in cases where the contract is intended as a gift to the third party.