If the Minimum Points of All the Possible Short-Run Average

question 34

Multiple Choice

If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:

• A) the firm should try to produce less output.
• B) total variable costs are constant along the LRAC curve .
• C) there are economies of scale.
• D) when output is doubled, total costs are doubled.

Comprehend the impact of a country's economic development on distribution channels.

Recognize the role of product extension and adaptation in global markets.

Understand the significance of direct investment in establishing foreign subsidiaries or divisions.

Understand different global marketing product and promotion strategies.

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Definitions:

Complements

Goods or services that are used together, where the use or consumption of one enhances the value or demand of the other.

Inferior Good

An inferior good is a type of product that sees an increase in demand as consumers’ income decreases, contrary to what is observed with normal goods.

Complement

A good or service that, when used together with another, enhances mutual use and utility, often impacting demand in correlated ways.

Public Service Announcements

Messages broadcasted to inform or educate the public on issues of public interest without commercial intention.