Expenditures on Advertising

question 77

Multiple Choice

Expenditures on advertising

• A)can lower average total cost if the advertising increases the quantity sold by a large enough amount.
• B)cannot lower average total cost because when a firm advertises it increases its costs.
• C)always lower average total cost because whenever a firm advertises,it increases the quantity sold.
• D)are variable costs so do not affect the average total cost.
• E)lower total cost if the advertising increases the quantity sold by a large enough amount.

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