As Long as Marginal Cost Is Less Than Average Variable

question 10

Multiple Choice

As long as marginal cost is less than average variable cost:

• A)both average total costs and average variable costs will be falling.
• B)average total costs will be falling but average costs may be rising or falling.
• C)average fixed costs are rising.
• D)average total costs are falling but average fixed costs may be rising.

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Definitions:

Face Value

The face value or the amount in dollars shown on a bond, note, or any financial instrument, representing its value upon reaching maturity.

Current Yield

A financial ratio that calculates the annual interest or dividends received from an investment as a percentage of the current market price.

Coupon

The face value percentage that represents the yearly interest payment on a bond.

Semiannually

Occurring or conducted twice a year; typically refers to payments, reports, or evaluations made every six months.