Exhibit 8-5 -If Average Fixed Cost Is Falling with Increasing Output, Then

question 109

Multiple Choice

Exhibit 8-5
-If average fixed cost is falling with increasing output, then

• A)marginal cost must be increasing.
• B)average total cost must be decreasing.
• C)average variable cost must be decreasing.
• D)total fixed cost must be constant.
• E)marginal cost must be decreasing.

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Definitions:

Business-to-Business

Commercial transactions or relationships between two businesses, rather than between a company and individual consumers.

Marketing

Marketing encompasses the activities, strategies, and processes used to promote and sell products or services, including market research, advertising, distribution, and customer relationship management, aiming to satisfy customer needs and achieve business objectives.

Business-to-Government

Transactions conducted between companies and governmental bodies.

Consumer-to-Consumer

A type of commerce where private individuals trade goods, services, or information directly with each other, often facilitated by a third-party platform.