The Marginal Cost Curve Crosses the Average Total Cost Curve

question 365

Multiple Choice

The marginal cost curve crosses the average total cost curve at

• A)the efficient scale.
• B)the minimum point on the average total cost curve.
• C)a point where the marginal cost curve is rising.
• D)All of the above are correct.

---

Definitions:

Constant Mesh

Gears positioned to remain in permanent mesh, not engaged and disengaged by shifting action.

Sliding Clutch

Actuated by a shift yoke, used to engage a gear on a shaft. Also known as a dog clutch.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of a project or investment by calculating the difference between the present value of cash inflows and outflows.

CCA Rate

Stands for Capital Cost Allowance rate, which is a tax deduction in Canada that represents a business's investment in certain assets depreciating over time.