Average fixed cost is
Never becomes zero
Curve never touches x - axis
Curve never touches y - axis
All the above
_________ cannot be changed in the short period .
Fixed Cost
Production Cost
Total Cost
Variable Cost
Wages is __________ cost of the production.
Fixed
Variable
Opportunity
Marginal
If total revenue is divided by the units sold, we shall get
Total Revenue
Average Revenue
Marginal Revenue
Total Profit
When internal economies of scale occur?
Total costs fall
Marginal costs increase
Average costs fall
Revenue falls
If law of diminishing return is in operation average cost
Decreases
Increases
Remains Constant
Decreases Slowly
Revenue received from the sale of additional unit is termed as
Profit
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
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
