Which of the Following Statements Is Correct

question 87

Multiple Choice

Which of the following statements is correct?

• A)When the marginal cost curve is above the average cost curve, the average cost curve must be rising.(True Answer
• )Correct
• B)When the marginal cost curve is below the average cost curve, the average cost curve must be rising.
• C)When MR = MC, the average cost curve is at its minimum point.
• D)When MR = P, the average cost curve is at its minimum point.

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Definitions:

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or accounts receivable. A subdivision of owner’s equity: As revenue increases, owner’s equity increases.

Breakfast Department

A specific business unit within a hospitality organization that is responsible for managing and operating the breakfast service.

Cost Center

is a segment of a business that does not directly generate revenue but incurs costs, like a human resources department.