Average Total Cost Is Equal To

question 142

Multiple Choice

Average total cost is equal to:

• A)average variable cost plus marginal cost
• B)total cost less total output
• C)average fixed cost plus average variable cost
• D)average variable cost divided by total output

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Definitions:

Written Agreement

A documented arrangement between parties that outlines terms and conditions and is legally enforceable.

Partnership

A lawful business structure operated by two or more people, who are both responsible for managing the business and sharing its earnings.

S Corporation

A special type of corporation in the United States that meets specific Internal Revenue Service criteria and elects to be taxed as a pass-through entity, avoiding double taxation on corporate income.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a stake in the company's profits and decision-making.