When internal economies of scale occur?
Total costs fall
Marginal costs increase
Average costs fall
Revenue falls
Which one of the following statements is true?
If the marginal cost is greater than the average cost falls
If the marginal cost is greater than the average cost the average cost increases
If the marginal cost is positive total costs are maximized
If the marginal cost is negative total costs increase at a decreasing rate of output increases
_________ cannot be changed in the short period .
Fixed Cost
Production Cost
Total Cost
Variable Cost
If firms earn normal profits :
They will aim to leave the industry
Other firms will join the industry
The total revenue equal total costs
No profit is made in accounting terms
__________ increases and decreases with the volume of output.
Money Cost
The profit per sale is a measure of
Cash Flow
Profitability
Feasibility
Liquidity
If law of diminishing return is in operation average cost
Decreases
Increases
Remains Constant
Decreases Slowly
If total units sold of the commodity are multiplied by the cost per unit of the commodity we shall get
Average Revenue
Total Revenue
Marginal Revenue
Profit
Wages is __________ cost of the production.
Fixed
Variable
Opportunity
Marginal
_________ are short run cost.
AC
MC
TC
All the above
