If Marginal Cost Is Between Average Variable Cost and Average

question 171

Multiple Choice

If marginal cost is between average variable cost and average total cost, then

• A) both average variable cost and average total cost are increasing.
• B) both average variable cost and average total cost are decreasing.
• C) average variable cost is increasing and average total cost is decreasing.
• D) average variable cost is decreasing and average total cost is increasing.

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Definitions:

Annual Dividend

The total dividend payment a company distributes to its shareholders in a year, often quoted per share.

Total Return

The overall financial gain or loss on an investment, including both capital appreciation/depreciation and dividends or interest over a given period.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Capital Gains Yield

The price appreciation component of the total return on an investment, calculated as the change in the price of the investment over a period of time.