​Average Costs _______Initially Due to the Presence of Fixed Costs

question 31

Multiple Choice

​Average costs _______initially due to the presence of fixed costs and then rise due to _________

• A)​fall;decreasing marginal costs 
• B)fall ;increasing marginal costs 
• C)rise;decreasing fixed costs
• D)​rise;increasing fixed costs

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Definitions:

Annual Growth

The year-over-year increase, usually presented as a percentage, in a particular metric such as revenue, earnings, or assets.

Growth Rate

The percentage increase in the size or value of something, such as an economy, company’s revenue, or population, over a specific period.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Stock Value

The current price at which a share of a company's stock can be bought or sold. It is determined by the market and can fluctuate based on demand and supply.