If a firm's average cost is declining, setting price equal to marginal cost will
a. maximize the firm's profits.
b. minimize the firm's losses.
c. guarantee that the firm will lose money.
d. help the firm earn the opportunity costs of its resources.
c
Economics
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The amount of time required before a project's total inflows match its total outflows is the:
A. break-even period. B. payback period. C. duration. D. yield to maturity.
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The advertisers' dilemma occurs in markets where:
A. advertising slightly increases the firm's sales quantity. B. advertising greatly increases the firm's sales quantity. C. advertising has zero impact on the firm's sales quantity. D. advertising greatly decreases the firm's sales quantity.
Economics