Average Variable Costs

question 31

Multiple Choice

Average variable costs

• A)are parallel with average total costs
• B)rise if marginal costs rise.
• C)are not parallel with average total costs.
• D)fall with increases in production.

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Definitions:

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

Capital Budgeting Approaches

Strategies and methodologies used by businesses to evaluate and select major investment and expenditure opportunities.

Conceptual Standpoint

A perspective or approach based on abstract ideas or theories rather than on practical applications.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, using future cash flows adjusted to their present value.