Even If a Firm's Average Variable Cost Remains Constant Per

question 101

True/False

Even if a firm's average variable cost remains constant per unit, its average cost will increase as output increases.

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Definitions:

Asset Turnover Ratio

The Asset Turnover Ratio is a financial metric that measures the efficiency of a company in generating sales revenue from its assets.

Return on Assets

This measures how effectively a company uses its assets to generate profit, calculated by dividing net income by total assets.

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction.

Continuing Operations

The segments or activities of a business expected to continue for the foreseeable future, excluding any discontinued operations from financial analysis.