If a Firm's Average Variable Cost Is Constant Per Unit

question 41

True/False

If a firm's average variable cost is constant per unit, then the firm's average cost decreases continually as output increases because average fixed cost decreases continually.

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Definitions:

Consolidated Income Tax Return

A consolidated income tax return is filed by a corporate group that combines the tax liabilities and incomes of all the entities within the group, allowing them to file as a single entity.

Intra-entity Transfers

Transactions of goods, services, or resources between divisions, departments, or affiliates within the same legal entity.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors or other corporate policies.

Foreign Corporation

A company that is incorporated in a country other than the one in which it is doing business.