A Possible Negative Consequence of Diverting Is _____

question 145

Multiple Choice

A possible negative consequence of diverting is _____.

• A) product tampering 
• B) product quality might suffer 
• C) the cost of an exit-fee 
• D) product tampering, and that the quality of the product might suffer. 
• E) None of these are correct.

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Definitions:

Perfect Competition

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect prices.

Marginal Cost (MC)

The increase in total cost that results from producing 1 more unit of output. Marginal costs reflect changes in variable costs.

Marginal Cost

The financial increment incurred by the production of an extra unit of a product or service.

Average Total Cost

It refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.