In the long term a firm will produce provided the revenue covers ?
A. Fixed costs
B. Variable costs
C. Total costs
D. Revenue
QuizMaster
If the price is less than the average costs but higher than the average variable costs ?
If the price is less than the average costs but higher than the average variable costs ?
A. The firm is making a loss and will shutdown in the short term
B. The firm is making a profile
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs
If marginal product is below average product ?
If marginal product is below average product ?
A. The total product will fall
B. The average product will fall
C. Average variable cost will fall
D. Total revenue will fall
Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?
Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?
A. Marginal cost is Rs20
B. Average cost falls
C. Variable cost rises by Rs100
D. Average fixed cost is Rs10
The average variable cost curve ?
The average variable cost curve ?
A. is derived from the average fixed costs
B. Converges with the average cost as output increases
C. Equals the total costs divided by the output
D. Equals revenue minus profits
When internal economies of scale occur ?
When internal economies of scale occur ?
A. Total costs fall
B. Marginal costs increase
C. Average costs fall
D. Revenue falls
According the law of diminishing returns ?
According the law of diminishing returns ?
A. The marginal product fall as more units of a variable factor are added to a fixed factor
B. Marginal utility falls as more unity of a product are consumed
C. The total product falls as more units of a variable factor are added to a fixed factor
D. The marginal product increases as more units of a variable factor are added to a fixed factor
Any combination of products inside the production possibility frontier is ?
Any combination of products inside the production possibility frontier is ?
A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient
The resources in the economy do not include ?
The resources in the economy do not include ?
A. Demand
B. Land
C. Labour
D. Capital
If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is ?
If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is ?
A. 7As
B. 10As
C. 3As
D. 1A