If marginal revenue equals marginal cost:
No profit is being made
Total revenue equals total cost
Profit are maximized
Producing another unit could increase profit
The average variable cost curve:
Is derived from the average fixed cost
Converges with the average cost as output increases
Equals the total costs divided by the output
Equals revenue minus profits
Marginal revenue is the least addition made to the
Average revenue
Total production
Total Revenue
Total cost
If marginal cost is positive and falling
Total cost is falling
Total cost is increasing at a falling rate
Total cost is falling at a falling rate
Total cost is increasing at an increasing rate
If the marginal revenue is less than the marginal cost then to profit maximize a firm should
Reduce output
Increase output
Leave output where it is
Increase costs
The amount of money which the firm recovers by the sale of its output in the market is known as its
Cost
Revenue
Profit
Social costs are those costs
Not born by the firms
Incurred by the society
Health hazards
All of the above
__________ refers to the total amount of money that a firm receives from the sale of its products.
Total revenue
Marginal revenue
All the above
Price equals:
Total revenue - quantity
Total revenue / quantity sold
Total quantity sold × quantity sold
Total revenue / total cost
Economic cost includes explicit cost and
Implicit cost
Social cost
Fixed cost
Money cost.
