Average Cost

question 24

Multiple Choice

Average cost

• A)is always larger than marginal cost.
• B)declines for some range of output, hits a minimum, and then increases.
• C)is always smaller than marginal cost.
• D)is total cost/price of the product.

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Definitions:

Stock Contingency

Relates to conditions or events that must occur before the issuance of stock can happen or conditions affecting a stock’s status.

Contingent Performance Obligation

An obligation in a contract that becomes enforceable only under certain conditions or upon the occurrence of specific events.

Additional Paid-In Capital

The amount of capital paid by investors for shares that exceeds the par value of the shares; also referred to as share premium.

Fair Value

An estimate of the market value of an asset or liability, reflecting current conditions and market perceptions.