If the Total Cost of 20 Units of a Product

question 419

Multiple Choice

If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to 21 units of product the

• A)marginal cost is decreasing.
• B)marginal cost equals average total cost.
• C)marginal cost equals average variable cost.
• D)average total cost equals average variable cost.

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Definitions:

Competitive Forces

The various external pressures that businesses face in the marketplace, including competition from other firms, the bargaining power of suppliers and customers, and the threat of new entrants and substitute products.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

BCG Matrix

A strategic business tool that categorizes a company’s products or services into four types (Stars, Question Marks, Cash Cows, Dogs) based on market growth and market share.

Marketing Investment

The allocation of resources by a company towards marketing activities with the expectation of achieving an increase in sales and competitive advantage.