If a Firm's Average Total Cost Is Always a Constant

question 9

Multiple Choice

If a firm's average total cost is always a constant, its marginal cost is

• A)greater than its average total cost.
• B)less than its average total cost.
• C)equal to its average total cost.
• D)decreasing

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Definitions:

Collateral

Assets pledged by a borrower to secure credit or a loan, which can be seized in case of default.

Intangibles

Intangibles refer to non-physical assets that have value, such as intellectual property, goodwill, and brand recognition.

Proceeds

The amount of money obtained from an event or transaction, such as the sale of goods or property.

Creditors

Creditors are individuals, businesses, or entities that are owed money by debtors, typically arising from the provision of goods, services, or loans.