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In the Baumol model, increases in the T-bill rate suggest that:
Average Revenue
The amount of income generated per unit of sale, calculated by dividing total revenue by the number of units sold.
Total Revenue
The entire amount of income generated by the sale of goods or services, before any expenses are deducted.
Variable Costs
Costs that vary in direct proportion to the volume of output or production in a company.
Variable Costs
Costs that vary directly with the level of production or service delivery.
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