Which of the Following Statements Is Correct

question 445

Multiple Choice

Which of the following statements is correct?

• A)If marginal cost is rising, then average total cost is rising.
• B)If marginal cost is rising, then average variable cost is rising.
• C)If average variable cost is rising, then marginal cost is minimized.
• D)If average total cost is rising, then marginal cost is greater than average total cost.

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Definitions:

Market Development

The strategy of entering new markets or segments to expand the customer base for existing products or services.

Diversification

A strategy of expanding into new markets, products, or services to reduce risk and increase opportunities for growth.

Market Penetration

A quantification of the volume of sales or adoption rate of a product or service as compared to the entire theoretical customer base for that item.

Market Penetration

A strategy aimed at increasing a company's market share for an existing product, or promoting a new product, within an existing market.