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:

Sales Promotion

Direct inducements offering added value or some other incentive for buyers to enter into an exchange.