If law of diminishing return is in operation average cost
Decreases
Increases
Remains Constant
Decreases Slowly
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 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
Wages is __________ cost of the production.
Fixed
Variable
Opportunity
Marginal
Average revenue is always __________ the price of the commodity.
More than
Equal to
Lesser than
More or lesser than
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
_________ cannot be changed in the short period .
Fixed Cost
Production Cost
Total Cost
Variable Cost
Revenue received from the sale of additional unit is termed as
Average Revenue
Marginal Revenue
Total Revenue
Profit
If total units sold of the commodity are multiplied by the cost per unit of the commodity we shall get
