A Low-Cost Emphasis Strives to Provide

question 56

Multiple Choice

A low-cost emphasis strives to provide:

• A) no-frills, standardized products and services.
• B) products and services that provide unique market needs.
• C) products and services that provide prestige and image for customers.
• D) products and services that compete on features other than price.

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Definitions:

AVC

Average Variable Cost, the total variable cost divided by the quantity of output produced.

AFC

Average fixed cost, or the total fixed costs divided by the quantity of output produced, indicating how fixed costs per unit change with production levels.

MC

The additional cost incurred for producing one more unit of a good or service; it's synonymous with marginal cost.

Marginal Cost

is defined as the increase in total production cost that arises from producing an additional unit of a good or service.