Marginal Cost (MC) Is Equal to Average Total Cost (ATC)

question 59

Multiple Choice

Marginal cost (MC) is equal to average total cost (ATC) at

• A) the maximum point of the ATC.
• B) the minimum point of the ATC.
• C) no point.
• D) the minimum point of the MC.
• E) the maximum point of the MC.

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Definitions:

Carrying Amount

The value at which an asset or liability is recognized on the balance sheet, calculated as historical cost minus accumulated depreciation or amortization and impairment losses.

Legal Obligations

Commitments or duties bound by law that require an individual or company to act or refrain from acting in a certain manner.

Other Comprehensive Income

Earnings derived from non-operational activities that are not included in net income, recorded in equity.

Revaluation

Revaluation is an adjustment to the carrying value of a currency, asset, or liability to reflect its current market value.