When Marginal Cost Is ABOVE Average Variable Cost,average Variable Cost

question 78

Multiple Choice

When marginal cost is ABOVE average variable cost,average variable cost must be:

• A)at its minimum.
• B)at its maximum.
• C)falling.
• D)rising.

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Definitions:

Price Lining

A pricing strategy that sets a limited number of prices for a specific category of products, thereby simplifying the choices available to consumers.

Demand-oriented

A pricing strategy where the price is set based on consumer demand, often adjusting prices in response to market conditions.

Target Pricing

A pricing strategy in which the selling price of a product is determined based on the desired profit margin and market conditions.

Ultimate Consumers

The end users who purchase products or services for personal use and not for manufacturing or resale purposes.