Average Fixed Cost Can Be Calculated Using Any of the Formulas

question 245

Multiple Choice

Average fixed cost can be calculated using any of the formulas below except

• A)TFC/Q.
• B)(TC - VC)/Q.
• C)Δ(TC - VC)/ΔQ.
• D)(TC/Q)- AVC.

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Definitions:

Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all the company's debts were paid off.

Capital Stock

The total amount of shares that a company can issue as authorized by its corporate charter, representing ownership in the company.

Redeemed Stock

Shares that have been bought back or repaid by the issuing company.