If Average Cost Is Declining

question 92

Multiple Choice

If average cost is declining,

• A)marginal cost must be below average cost.
• B)firms would go bankrupt if all prices were set equal to marginal costs.
• C)marginal cost may be declining or increasing.
• D)All of the above are correct.

Recognize the management and control mechanisms in various types of businesses, from sole proprietorships to corporations.

Distinguish between general and limited partners in partnerships and the extent of their liability and involvement in management.

Understand the concept of a professional corporation and how it differs from other business entities in terms of management and liability.

Identify the characteristics of a joint venture and how they compare to partnerships.

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Definitions:

Assignee

The person to whom contract rights are assigned.

Proper Notice

Adequate information or warning provided in advance, as required by law or agreement, to enable appropriate response or action.

Personal Services

Services provided directly to individuals based on personal skill or expertise, such as legal advice, medical treatment, or personal grooming.

Rendering

The process of generating a photorealistic or non-photorealistic image from a 2D or 3D model through computer software.