ATC = AFC + AVC = (TFC + TVC)/Q. First we focus on average fixed costs, TFC/Q. Since the cost is fixed, the smaller Q is the larger ATC will be. However as higher output levels are reached there is a point where the incremental change in total cost for each incremental change of quantity will start to increase. That is MC = DTC / Dq will start to get bigger to the point where MC > ATC such that
ATC gets bigger. So on either extreme (low Q, high Q), ATC will be high.

Service cost ($48) + interest cost ($32) - expected return on plan assets ($26) -amortization of unrecognized net gain ($3) + amortization of unrecognized prior service cost ($5) [in millions].

Per SFAS No. 87, service cost is defined as the actuarial present value of benefits attributed by the pension benefit formula to an employee during a period.

Net income is understated, and capital (retained earnings) is understated. For the following year, the cost of goods sold will be understated and net income overstated.

Technical analysts believe that information does not arrive randomly and the market takes time to process it. With serial correlation in new information, trends develop that can be exploited. A trader does not have to be the first one to jump into the market as the price trend tells the trader which way the market is headed.