If Roberts Electronics Finds That the Average Total Cost of Its

question 19

Multiple Choice

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

• A)its marginal costs are falling.
• B)average total cost is at its maximum.
• C)average total costs are rising.
• D)demand is elastic.
• E)average total cost is at its lowest level.

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Definitions:

Teenage Population

Represents the segment of the population within the age range typically considered to be between 13 and 19 years old.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Optimal Prices

The price point that maximizes a firm's profits or achieves the best balance between sales volume and profit margins.

Economies of Scale

The financial benefits that companies gain as a result of their size, production volume, or operational scope, where the cost for each unit of production typically falls as the scale expands.