If Average Cost Rises as a Firm Increases Its Output

question 249

Multiple Choice

If average cost rises as a firm increases its output level,

• A)profits are not being maximized
• B)marginal cost is greater than average cost
• C)profits are maximized
• D)marginal revenue is positive
• E)total cost is minimized

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Definitions:

Customer-Oriented

A business strategy that focuses on creating a positive experience for customers, aiming to meet or exceed their expectations.

Nonstandard Products

Products that are unique or customized, differing from mass-market or standardized offerings.

Creating Budget

The process of planning and allocating financial resources over a specific time period, ensuring funds are available for intended activities.

Controlling Inventory

The practice of overseeing and managing the ordering, storage, and use of components that a company will use in the production of the items it will sell, as well as the managing of quantities of finished products for sale.