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

question 22

Multiple Choice

When a firm increased its output by one unit,its AC decreased.This implies that

• A)MC < AC.
• B)MC = AC.
• C)MC < AFC.
• D)the law of diminishing returns has not yet taken effect.

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Definitions:

Golf Resort

A specialized leisure facility often combining a hotel and golf courses along with other amenities such as spa services, restaurants, and event spaces.

Acquisition of Assets

The process through which a company buys assets, which could range from tangible assets like equipment to intangible assets like patents.

Hostile Takeover

An acquisition attempt by a company or individual against the wishes of the company's management and board of directors.

Corporate Shell

A legal entity with no significant assets or operations, often used to facilitate business transactions like mergers or to hold assets.