If marginal revenue equals marginal cost:
No profit is being made
Total revenue equals total cost
Profit are maximized
Producing another unit could increase profit
When the average revenue remains constant, the marginal revenue will also
Increase
Decrease
Remain constant
None of these
If the marginal revenue is less than the marginal cost then to profit maximize a firm should
Reduce output
Increase output
Leave output where it is
Increase costs
The average variable cost curve
Is derived from the average fixed cost
Converges with the average cost as output increases
Equals the total costs divided by the output
Equals revenue minus profits
Total cost is the sum of
Total fixed cost and total variable cost
Total fixed cost and average cost
Marginal cost and average cost
All the above
The marginal cost curve is _________ shaped.
V shaped
U shaped
Curve
Real cost is
Pain and sacrifice
Subjective concept
Effort and foregoing leisure
________ is the revenue per unit of the commodity sold. It is calculated by dividing the total revenue by the number of units sold.
Average Revenue
Marginal Revenue
Total Revenue
None of These
Price equals
Total revenue - quantity
Total revenue / quantity sold
Total quantity sold × quantity sold
Total revenue / total cost
The amount of money which the firm recovers by the sale of its output in the market is known as its
Cost
Revenue
Profit
Investment
