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Expenditures on Advertising

Question 210

Multiple Choice

Expenditures on advertising


A) can lower average total cost if the advertising increases the quantity sold by a large enough amount.
B) cannot lower average total cost because when a firm advertises it increases its costs.
C) always lower average total cost because whenever a firm advertises, it increases the quantity sold.
D) are variable costs so do not affect the average total cost.

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