In the Derivation of AVC, to Find Its Minimum You

question 87

Multiple Choice

In the derivation of AVC, to find its minimum you need

• A)The minimum-slope ray out of the origin to the TC
• B)The minimum-slope ray out of the origin to the ATC
• C)The minimum-slope ray out of the origin to the TVC
• D)The flattest slope on the TC.

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Definitions:

Noncurrent Asset

A noncurrent asset is a long-term investment or property that a company does not expect to convert into cash within one year.

Investing Cash Flow

Investing cash flow refers to the cash inflows and outflows associated with the purchase and sale of long-term investments and capital assets.

Current Ratio

A liquidity ratio that measures a company's capacity to pay off its short-term liabilities with its short-term assets.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as recorded on the balance sheet.