Which of the Following Is Not a Property of a Firm's

question 514

Multiple Choice

Which of the following is not a property of a firm's cost curves?

• A)Marginal cost must eventually rise as a result of diminishing marginal product.
• B)Average total cost is U-shaped.
• C)Economies of scale will exist when average total cost falls as output rises.
• D)Average total cost will cross marginal cost at the minimum of marginal cost.

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Definitions:

Employee Downtime

Periods when employees are not actively working due to breaks, equipment failure, or lack of demand.

Factory Overhead Cost

This rephrases "Factory Overhead" as the total expenses related to the operation of a factory that is not directly tied to a specific product or service.

Factory Burden

Another term for manufacturing overhead or factory overhead.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.