If Average Variable Cost Decreases as Output Increases,then

question 78

Multiple Choice

If average variable cost decreases as output increases,then

• A) marginal cost is negative.
• B) marginal cost is decreasing.
• C) marginal cost is less than average variable cost.
• D) marginal cost is greater than average variable cost.

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Definitions:

Repayments of Bonds

This concerns the act of returning borrowed funds to bond investors at the agreed-upon maturity date, usually including both principal and interest payments.

Statement of Cash Flows

A financial report that shows the cash inflows and outflows for a company over a specific period, indicating how it sources and uses cash.

Amortization

The process of gradually paying off a debt over a period of time through planned, periodic payments of principal and interest.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is sold for less than its face value.