The Average-Total-Cost Curve Intersects

question 449

Multiple Choice

The average-total-cost curve intersects

• A)average fixed cost at the minimum of average total cost.
• B)average variable cost at the minimum of average total cost.
• C)marginal cost at the minimum of average total cost.
• D)marginal cost at the minimum of marginal cost.

---

Definitions:

Fixed-Asset Turnover

A financial ratio that measures a company's ability to generate sales from its fixed assets.

ROA

Return on Assets; a financial ratio indicating how profitable a company is relative to its total assets.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Times-Interest-Earned Ratio

This financial metric measures a company's ability to meet its debt obligations based on its current income, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.