Average Total Cost Equals

question 69

Multiple Choice

Average total cost equals

• A) the change in total cost divided by the change in output.
• B) total fixed cost divided by output.
• C) average fixed cost plus average variable cost.
• D) total cost minus total variable cost.
• E) average fixed cost plus average variable cost plus marginal cost.

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Definitions:

Net New Equity

The amount of money raised by a company through the issuance of new shares, minus any shares repurchased.

Equity Repurchases

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

New Equity Sales

New equity sales refer to the process of issuing new shares of stock to investors in order to raise capital for the corporation.

Cash Flow From Assets

The total amount of cash generated by a company’s main business operations, available for debt servicing, dividend payments, and reinvestment in the firm.