The Minimum Points of the Average Variable Cost and Average

question 67

Multiple Choice

The minimum points of the average variable cost and average total cost curves occur where

• A) the marginal cost curve lies below the average variable cost and average total cost curves.
• B) the marginal cost curve intersects those curves.
• C) the average variable cost and average total cost curves intersect.
• D) the slope of total cost is the smallest.

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Definitions:

Expected Profit

The projected earnings calculated by assessing potential revenues minus anticipated costs.

Product Availability

The extent to which products are in stock and accessible for purchase by customers, directly impacting sales and customer satisfaction.

Inventory

The total amount of goods or materials that a company or business has in stock, waiting to be sold or used.

Costs of Overstocking

Expenses related to holding excess inventory, including storage, insurance, and losses due to obsolescence or deteriorating items.