If Average Total Cost Is Decreasing as More and More

question 77

Multiple Choice

If average total cost is decreasing as more and more units are produced, then marginal cost must be

• A) rising.
• B) constant.
• C) below average total cost.
• D) negative.

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Definitions:

Order Fulfillment Department

A division within a company that is responsible for processing customer orders, from receipt through delivery.

Matching Capacity

The ability of a company to align its production capacity with the demand for its products.

Impact on Expenses

The effect on a company's costs, often analyzed to assess changes in financial performance.

Time-Driven Activity-Based Costing

A cost accounting method that assigns costs to products or services based on the time resources are used in business activities.