Average Cost Curves Have the Same Shape as

question 99

Multiple Choice

Average cost curves have the same shape as

• A)total cost curves.
• B)marginal cost curves.
• C)total fixed cost curves.
• D)average fixed cost curves.

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Definitions:

Straight-line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Annual Interest

The total amount of interest due over the course of a year on a loan or financial product.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.

Semiannual Interest

Interest calculated and paid on a loan or bond two times a year.