Managers can identify excess capacity by measuring the gap between Multiple choice question. the minimum average total cost output and the profit-maximizing output. price and marginal revenue at the profit-maximizing output. price and average total cost at the profit-maximizing output. the minimum-marginal-cost output and the profit-maximizing output. marginal revenue and marginal cost at the profit-maximizing output.

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone