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
Price equals
Total revenue - Quantity
Total revenue/Quantity sold
Total quantity sold × Quantity sold
Total revenue/Total cost
If total revenue is divided by the units sold, we shall get
Total Revenue
Average Revenue
Marginal Revenue
Total 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
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
_________ are short run cost.
AC
MC
TC
All the above
If total units sold of the commodity are multiplied by the cost per unit of the commodity we shall get
Profit
Revenue received from the sale of additional unit is termed as
_________ cannot be changed in the short period .
Fixed Cost
Production Cost
Total Cost
Variable Cost
