If MC Is Greater Than ATC,we Know That

question 49

Multiple Choice

If MC is greater than ATC,we know that:

• A)ATC must be rising.
• B)AVC must be falling.
• C)ATC must be falling.
• D)ATC could be rising or falling.
• E)AVC must be rising.

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Definitions:

Break-Even Point

The point at which the amount of goods produced or sold matches the total costs, leading to no profit or loss.

Variable Expenses

Costs that change in proportion to the level of goods or services produced by a business.

Fixed Expenses

Costs that do not change with the level of goods or services a company produces over a short period, such as rent, salaries, and insurance.

Sales Mix

The proportion of different products or services that a company sells, impacting its overall profitability and revenue.