Which of the Following Statements Regarding the Relationship Between Average

question 44

Multiple Choice

Which of the following statements regarding the relationship between average cost and marginal cost is not true?

• A)When marginal cost is below average total cost,average total cost falls.
• B)When marginal cost is above average variable cost,average variable cost rises.
• C)When marginal cost is equal to average total cost,average total cost is minimized.
• D)When marginal cost is above average fixed cost,average fixed cost rises.

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Definitions:

Journal Entries

The record of financial transactions in an accounting system, used to transfer information to the ledger, showing detailed information regarding date, accounts affected, and amounts.

Posted Correctly

The action of accurately recording transactions in the appropriate accounts in an accounting system.

Ledger

A book or digital record in which a company maintains its accounts, tracking all financial transactions systematically.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing key information on its financial health.