Which of the Following Is True

question 192

Multiple Choice

Which of the following is true?

• A)ATC = AVC - AFC.
• B)TVC/Q = TC/Q + TFC/Q
• C)ΔTC/ΔQ = ΔAVC/ΔQ
• D)ΔTVC/ΔQ = MC

---

Definitions:

Lock-up Restrictions

Contractual limitations on the sale of securities, typically imposed on company insiders following an initial public offering.

Less Liquid

A term describing an asset that cannot be quickly sold or converted into cash without significant loss of value.

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.

Front-end Commission

A fee paid when purchasing shares of a mutual fund, upfront, which reduces the amount invested from the start.