A Linear Total Cost Curve Which Passes Through the Origin

question 27

Multiple Choice

A linear total cost curve which passes through the origin implies that

• A)average cost is constant and marginal cost is variable.
• B)average cost is variable and marginal cost is constant.
• C)average and marginal costs are constant and equal.
• D)need more information to answer question.

---

Definitions:

Three Sigma

Three Sigma is a statistical measure that represents a control process for quality that aims to keep defects within a limit of three standard deviations from the mean in manufacturing processes.

ISO 9000

A family of standards related to quality management systems designed to help organizations ensure they meet customer and other stakeholder needs within statutory and regulatory requirements related to a product.

ISO 14001

An international standard that specifies requirements for an effective environmental management system (EMS).

TQM

Total Quality Management, a management approach focused on continuous quality improvement of products and services, involving all organization members.