If Roberts Electronics Finds That the Average Total Cost of Its

question 47

Multiple Choice

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then its:

• A) marginal costs are falling.
• B) average total cost is at its maximum.
• C) average total costs are rising.
• D) demand is elastic.
• E) average total cost is at its lowest point.

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Definitions:

Truth In Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Open-End Credit

A revolving line of credit that allows borrowers to spend up to a specified limit, pay off the debt, and borrow again without having to reapply for a new loan.

Detailed Disclosure

Detailed disclosure refers to the comprehensive provision of information relevant to a decision, transaction, or agreement, often required by law or regulations in financial and other formal contexts.

Debit Card Applications

Debit card applications are forms or processes by which individuals apply for cards that allow them to spend money by deducting directly from their bank accounts.