When the Size of the Production Is the Most Efficient

question 72

Multiple Choice

When the size of the production is the most efficient:

• A) total cost is at the minimum.
• B) average cost is at the minimum.
• C) marginal cost is at the minimum.
• D) fixed cost is at the minimum.

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Definitions:

Paid-in Capital

The amount of money shareholders have invested in a company in exchange for equity, excluding any earnings retained by the company.

Market Value

The ongoing rate at which a commodity or service is offered for buying or selling in the market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Cash Dividends

Payments made by a corporation to its shareholders in the form of cash out of its earnings.