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Management Wants to Offer a "Thank You" Sale to Its

Question 205

Multiple Choice

Management wants to offer a "Thank You" sale to its customers by offering to sell additional units of a product at the lowest price possible without affecting their profits. The price management charges for these one-time sale units should be set equal to the:


A) Average variable cost.
B) Average total cost.
C) Average total revenue.
D) Marginal revenue.
E) Marginal cost.

Correct Answer:

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