When a Firm Increased Its Output by One Unit,its AFC

question 23

Multiple Choice

When a firm increased its output by one unit,its AFC decreased.This is an indication that

• A)the law of diminishing returns has taken effect.
• B)MC < AFC.
• C)AVC < AFC.
• D)the firm is spreading out its total fixed cost.

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Definitions:

Suggestion Technique

A selling technique where the salesperson proposes options or ideas to the customer to encourage making a purchase decision or enhancing the purchase.

Customer Testimonials

Customer testimonials are written or recorded statements from satisfied customers, extolling the virtues and benefits of a product, service, or company.

Customer Participation

The involvement of customers in the development, delivery, and evaluation of products or services, often leading to improved customer satisfaction and loyalty.

Sales Presentation

An opportunity to formally communicate the value proposition of a product or service to potential buyers, often using visual aids and demonstrations.