The Tangency Points Between the Long-Run Average Cost Curve (LRAC)and

question 63

Multiple Choice

The tangency points between the long-run average cost curve (LRAC) and the short-run average cost curves (SRAC) are

• A) always at the minimum of the SRACs.
• B) never at the downward portion of the SRACs.
• C) always at the maximum of the SRACs.
• D) not necessarily at the minimum of the SRACs.

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Definitions:

Frequency Marketing

A marketing strategy that rewards customers for frequent purchases or engagements with a brand, encouraging loyalty.

Usage Rate

The frequency at which a consumer uses a product or service, often influencing marketing strategies and segmentation.

Hotel Programs

Initiatives or loyalty schemes offered by hotels to reward frequent guests and enhance their staying experience.

Behavioral Segmentation

The method of segmenting a market into categories based on consumer awareness, perceptions, applications, or reactions towards a product.