Average Total Cost Is Equal to Marginal Cost When

question 105

Multiple Choice

Average total cost is equal to marginal cost when

• A)average fixed cost is rising.
• B)average variable cost is falling.
• C)marginal cost is at its minimum.
• D)average total cost is at its minimum.
• E)average variable cost is also equal to marginal cost.

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Definitions:

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct costs and overheads attributable to that segment.

Avoidable Cost

Expenses that can be eliminated if a particular decision or action is not pursued.

Special Order

A special order is an order for goods or services that is outside the company's normal scope of operations or production schedule, often requiring special pricing or terms.

Minimum Selling Price

The lowest price at which a product can be sold to cover its production costs without making a loss.