One of the replacement rule is when the defender's marginal cost becomes greater than the challenger's minimum EUAC, then replace the defender.

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The replacement rule states that when the defender's marginal cost becomes greater than the challenger's minimum EUAC, then the defender should be replaced. This is because the challenger can produce the same product at a lower cost than the defender, so it is more efficient to replace the defender with the challenger.

One of the Replacement Rule Is When the Defender's Marginal