Price equals
Total revenue - Quantity
Total revenue/Quantity sold
Total quantity sold × Quantity sold
Total revenue/Total 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
If total revenue is divided by the units sold, we shall get
Total Revenue
Average Revenue
Marginal Revenue
Total Profit
If the marginal revenue is less than the marginal cost than to profit maximum a firm should:
Reduce Output
Increase Output
Leave output where it is
Increase Costs
The average variable cost curve:
Is derived from the average fixed costs
Converges with the average cost as output increases
Equals the total costs divided by the output
Equals revenue minus profits
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
_________ are short run cost.
AC
MC
TC
All the above
Average fixed cost is
Never becomes zero
Curve never touches x - axis
Curve never touches y - axis
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
