Statement I: Average Variable Cost Can Be Found by Dividing

question 158

Multiple Choice

Statement I: Average variable cost can be found by dividing output by variable cost.
Statement II: At an output of zero,total cost is always equal to fixed cost.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Subagent

An agent of an agent, or a person who is appointed by an agent to perform tasks that the agent has undertaken to perform for the principal.

Gratuitous Agent

An agent who receives no compensation for his or her services.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee for a beneficiary.

Apparent Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the third party.