Which of the Following Is Correct as It Relates to Cost

question 88

Multiple Choice

Which of the following is correct as it relates to cost curves?

• A)Average variable cost intersects marginal cost at the latter's minimum point.
• B)Marginal cost intersects average total cost at the latter's minimum point.
• C)Average fixed cost intersects marginal cost at the latter's minimum point.
• D)Marginal cost intersects average fixed cost at the latter's minimum point.

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Definitions:

Compound Annual Return

The annualized average percentage rate of return that accounts for the compounding of interest over a period of time.

Diversified Equity Mutual Fund

A mutual fund that invests in a wide range of equities from various sectors to reduce investment risk.

Canadian Companies

Businesses that are registered, operated or have a significant presence in Canada.

Compounded Quarterly

A method of calculating interest in which the interest is compounded quarterly, being added to the principal amount four times annually.