Question: b ) A manager makes the statement that output should be expanded as long as average revenue exceeds average cost. Does this strategy make sense?

b) A manager makes the statement that output should be expanded as long as average revenue exceeds average cost. Does this strategy make sense? Explain (5marks)c) Two months ago, the owner of a car dealership changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of K6,000 per month; under the new plan, she receives 2 percent of the sales price of each car sold. During the past two months, the number of cars sold increased by 40 percent, but the dealership's margins (and profits) significantly declined. According to the sales manager, "Consumers are

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