If Marginal Cost Is Equal to Average Total Cost, Then

question 199

Multiple Choice

If marginal cost is equal to average total cost, then:

• A) average total cost is increasing.
• B) average total cost is at its maximum.
• C) average total cost is at its minimum.
• D) marginal cost is increasing.

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Definitions:

Carrying Value

The net book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Bond Discount

is the difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Straight Line Amortization

A method for calculating the periodic reduction in the carrying amount of an intangible asset, spreading the cost evenly over its useful life.

Par Value Bonds

Bonds issued with a fixed face value that is to be repaid at maturity, often different from their market value.