When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is above the average total cost curve. b. marginal cost curve intersects the average total cost curve. C. average fixed cost curve is above the marginal cost curve. d. average variable cost curve is above the average total cost curve. e. average variable cost curve intersects the average total cost curve.

The ratio of total cost to number of units produced defines: a. Incremental cost b. Average cost c. Marginal cost d. Opportunity cost.

How does fixed cost affect marginal cost? Why is this relationship important?

A book publisher hires editors, designers, and production and marketing managers who help prepare books for publication. Because these employees work on several books simultaneously, the number of people the company hires will neither increase nor decrease with the quantity of books the company publishes during any particular year. The salaries and benefits of people in these job categories will be included in Select one: a. fixed cost and marginal cost but not variable cost. b. fixed cost but not variable cost and total cost. c. marginal cost and total cost but not fixed cost. d. fixed cost and total cost but not variable cost. e. Average variable cost