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
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 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
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
Revenue received from the sale of additional unit is termed as
Average Revenue
Marginal Revenue
Total Revenue
Profit
_________ are short run cost.
AC
MC
TC
All the above
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
Price equals
Total revenue - Quantity
Total revenue/Quantity sold
Total quantity sold × Quantity sold
Total revenue/Total cost
__________ increases and decreases with the volume of output.
Fixed Cost
Variable Cost
Total Cost
Money Cost
_________ cannot be changed in the short period .
Production Cost
