The Minimum Points of the Average Variable Cost and Average

question 167

Multiple Choice

The minimum points of the average variable cost and average total cost curves occur where the

• A)marginal cost curve lies below the average variable cost and average total cost curves.
• B)marginal cost curve intersects those curves.
• C)average variable cost and average total cost curves intersect.
• D)slope of total cost is the smallest.

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Definitions:

Forward Contract

A tailor-made agreement between two entities to purchase or sell a valuable at an agreed price on a predetermined date in the future.

July Futures Contract

A standardized, legal agreement to buy or sell a commodity or financial asset at a predetermined price at a specified time in July.

Settle Price

The official price at the end of a trading session on a futures exchange, used for calculations of margin and account balances.

Option Premium

The price paid for the rights granted by an options contract, not considering the actual trading of the underlying asset.