If We Know the Amount of Total Cost,average Total Cost,average

question 25

Multiple Choice

If we know the amount of total cost,average total cost,average variable cost,and marginal cost for each level of output,how can we find the level of output where the marginal product is the greatest?

• A) It is the output for which the marginal cost equals average variable cost.
• B) It is the output for which the total cost is maximized.
• C) It is the output for which the marginal cost is minimized.
• D) It is the output for which the marginal cost equals average total cost.
• E) There is no way to find where marginal product is the greatest knowing only cost data.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used, but not yet paid for.

Prepaid Expenses

Payments made for goods or services to be received in the future, recognized as assets on the balance sheet until they are incurred.

Journal Entry

A record of financial transactions in the accounting books of a business, indicating the accounts affected and the amounts.