If the Marginal Cost of Producing a Good Is Increasing

question 19

Multiple Choice

If the marginal cost of producing a good is increasing as a firm produces more of the good,then which of the following must be TRUE?

• A) AFC is rising.
• B) AVC is rising.
• C) MC > AVC.
• D) MPL is falling.

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Definitions:

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present, and potential customers for the product or service.

Personal Selling

A sales technique involving direct interaction between a salesperson and a customer with the aim of persuading the customer to purchase a product or service.

Non-price Strategy

Marketing tactics that do not involve altering the price, such as product differentiation, branding, and quality improvements.

Upper-middle Class

A socio-economic group characterized by high educational attainment, professional careers, and relatively high income.