Use the Figure Below to Answer the Following Questions

question 101

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.4.4
-Refer to Figure 11.4.4,which illustrates the long-run average total cost curve.Given an increase in output from Q₁ to Q₂,

• A)economies of scale exist.
• B)diseconomies of scale exist.
• C)constant returns to scale exist.
• D)average total cost is increasing.
• E)average total cost is decreasing.

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Definitions:

Tie-In Pricing

A marketing strategy that sells one product at a discount when bought together with another product.

Multi-Product Pricing

A strategy where businesses set different price levels for various products in their lineup, aiming to maximize profitability across the range.

Yield Management Pricing

This refers to a strategy in marketing and business where prices are constantly adjusted based on the product's or service’s demand, with the aim to maximize revenue.

Cognitive Dissonance

The discomfort in one's mind arising from holding several opposing beliefs, ideas, or values concurrently.