A(n)_____ Is an Offer of an Item of Merchandise or Service

question 146

Multiple Choice

A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra to purchase.

• A) coupon
• B) off-price deal
• C) premium
• D) rebate

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service; it varies depending on the level of production.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the average cost of producing each unit excluding fixed costs.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.

Demand Curve

It graphically represents the relationship between the price of a good and the quantity demanded by consumers, typically depicting an inverse relationship.