One of the Most Important Properties of Cost Curves Is

question 397

Multiple Choice

One of the most important properties of cost curves is that

• A) for most producers,the average total cost curve never crosses the marginal cost curve.
• B) the average fixed cost curve must eventually rise.
• C) the average total cost curve first rises,then falls with increased output.
• D) the marginal cost curve eventually rises with the quantity of output.

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Definitions:

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare programs, withheld from employees’ pay and matched by employers.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.