If a Firm Is Operating Beyond the Minimum Point of Its

question 176

Multiple Choice

If a firm is operating beyond the minimum point of its ATC curve,then marginal cost is

• A)greater than ATC and rising.
• B)greater than ATC and falling.
• C)less than ATC and rising.
• D)less than ATC and falling.

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Definitions:

Income Summary Account

An account used during the closing process in accounting that summarizes the revenues and expenses of a period to calculate the net income or loss.

Net Income

The net income of a company once all costs and taxes are deducted from the overall revenue.

Capital Account

A capital account tracks the net value of a company's assets contributed by its owners and investors plus retained earnings or minus any distributions to owners.

Ending Capital Balance

The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.