Steve, the Sales Manager for TL Products, Wants to Sponsor

question 19

Multiple Choice

Steve, the sales manager for TL Products, wants to sponsor a one-week "Customer Appreciation Sale" where the firm offers to sell additional units of a product at the lowest price possible without negatively affecting the firm's profits. Which one of the following represents the price that should be charged for the additional units during this sale?

• A) Average variable cost
• B) Average total cost
• C) Average total revenue
• D) Marginal revenue
• E) Marginal cost

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Definitions:

Business Necessities

Essential requirements or critical needs that enable a company to operate and achieve its objectives effectively.

Vocational Rehabilitation Act

A U.S. federal law enacted in 1973 designed to assist individuals with disabilities in obtaining and maintaining employment.

Affirmative Action

Policies and procedures designed to combat discrimination and promote diversity by favoring individuals belonging to groups historically discriminated against.

Reverse Discrimination

Discrimination against members of a dominant or majority group, often as an unintended consequence of affirmative action policies.