If Marginal Cost Is Greater Than Average Total Cost Then

question 42

Multiple Choice

If marginal cost is greater than average total cost then

• A)profits are increasing
• B)economies of scale are becoming greater
• C)average total cost remains constant
• D)average total cost is increasing
• E)average total cost is decreasing

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Definitions:

Maturity Value

The total amount that will be paid to an investor at the date of maturity of a financial instrument, including principal and any accrued interest.

Loss

The negative financial result from a business's operations when costs exceed revenues.

Issuing Bonds

The process by which a company or government raises capital by selling bonds to investors, incurring debt that must be repaid over time with interest.

Stockholders

Individuals or institutions that own at least one share of a company's stock, essentially owning a portion of the company.