What can the manager infer about the relationship between the square of the level of output and the average costs?
A) As the level of output increases, average costs decrease at an increasing rate.
B) As the level of output increases, at first average costs decrease, then will start to increase.
C) As the level of output increases, at first average costs increase, then will start to decrease.
D) As the level of output increases, average costs increase at an increasing rate.
B
You might also like to view...
A beneficial conversion option is an option to convert the debt to equity that is considered to be in the money
Indicate whether the statement is true or false.
Corporations sometimes distribute assets other than cash when paying a dividend. Which of the following is/are true?
a. Such a dividend is known as a dividend in kind or a property dividend. b. The accounting for property dividends resembles that for cash dividends, except that when the firm pays the dividend, it credits the asset given up, rather than Cash. c. The amount debited to Retained Earnings equals the fair value of the assets distributed. d. When this fair value differs from the carrying value of the assets distributed, the firm recognizes a gain or loss in net income. e. all of the above