If Price Exceeds Average Total Cost

question 230

Multiple Choice

If price exceeds average total cost

• A)the firm earns an economic profit
• B)there are a large number of buyers and sellers
• C)the firm suffers an economic loss
• D)the firm closes down
• E)the firm should reduce its production

Comprehend the importance of moving consumers through different stages of desire and interest through IMC.

Grasp the concept of the lagged effect in marketing and its implications for consumer purchasing behavior.

Understand the process of message origination and the importance of clear identification of the transmitter to the intended audience.

Realize the role of blogs and social media in developing long-term customer relationships.

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Definitions:

Corporate Raider

An investor who buys a large number of shares in a corporation with the aim to gain control of it and make changes to increase its value.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.