When Marginal Cost Is Less Than Average Variable Cost,average Variable

question 233

Multiple Choice

When marginal cost is less than average variable cost,average variable cost is falling.
Statement II: As output rises,average fixed cost declines.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false

---

Definitions:

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Marketing Strategy

An organization's comprehensive plan formulated for effectively promoting and selling its products or services, aiming to achieve a sustained competitive advantage.

Target Markets

Specific groups of potential consumers towards whom a company directs its marketing efforts and strategies.

Personal Care Products

Consumer products used in personal hygiene and for beautification, including items such as cosmetics, soaps, and hair care products.