If marginal product is below average product:
The total product will fall
The average product will fall
Average variable costs will fall
Total revenue will fall
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
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
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
If all the units of the product are sold at the same price average revenue will be __________ marginal revenue.
Equal to
More than
Lesser than
More or lesser than
If total revenue is divided by the units sold, we shall get
Total Revenue
Average Revenue
Marginal Revenue
Total Profit
Average fixed cost is
Never becomes zero
Curve never touches x - axis
Curve never touches y - axis
All the above
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
When internal economies of scale occur?
Total costs fall
Marginal costs increase
Average costs fall
Revenue falls
Revenue received from the sale of additional unit is termed as
Profit
